Vishal Mega Mart is likely to finalize the basis of allotment of its shares on Monday, December 16. Applicant bidders will get the messages, alerts or emails for debit of their funds or revocations of their IPO mandate latest by Tuesday, December 17. The hypermarket retail chain saw a strong response from the investors during the bidding process.
The IPO of Gurugram-based Vishal Mega Mart was open for bidding between December 11 and December 13. It had offered its shares in the price band of Rs 74-78 per share with a lot size of 190 shares. The company raised a total of Rs 8,000 crore via IPO, which was entirely an offer-for-sale (OFS) of up to 1,02,56,41,025 equity shares.
The issue was overall subscribed a solid 27.28 times. The allocation for the qualified institutional bidders (QIBs) was subscribed 80.75 times The portion allocated for non-institutional investors (NIIs) was subscribed 14.24 times. Allocations for retail investors were booked 2.31 times during the three-day bidding process.
The IPO of Vishal Mega Mart fetched bids worth Rs 1.60 lakh crore as investors applied for 20,64,25,17,700 equity shares compared to 75,67,56,757 equity shares offered for subscription. The quota allocated for qualified institutional investors saw bids amounting to Rs 1.36 lakh crore for their allocation.
The grey market premium of Vishal Mega Mart has improved slightly following a strong bidding for retail players. Last heard, the company was commanding a premium of Rs 19-20 in the unofficial market, suggesting a listing gains of around 25 per cent for the investors. The GMP stood at Rs 16 on the last day of the bidding.
Incorporated In 2001, Gurugram-based Vishal Mega Mart is a hypermarket chain that sells a wide range of products like apparel, groceries, electronics, and home essentials. They own their brands and third-party brands to meet the everyday needs of consumers including a wide range of products across apparel, general merchandise, and FMCG.
Brokerage firms had mostly had a positive view on the issue but suggested it for a long-term subscription citing its strong presence, efficient supply chain network, solid financial performance, impressive historical performance and reasonable valuations. However, the complete OFS nature, limited margins and competitive market were the key concerns for the company.
Kotak Mahindra Capital Company, ICICI Securities, Intensive Fiscal Services, Jefferies India, JP Morgan India and Morgan Stanley India Company are the book running lead managers of the Vishal Mega Mart IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE on Wednesday, December 18 as the tentative date of listing.
Investors, who had bid for the issue of Vishal Mega Mart, can check the allotment status on the Bombay Stock Exchange (BSE) website:
1) Visit https://www.bseindia.com/investors/appli_check.aspx
2) Under the issue type, click Equity
3) Under the issue name, select Vishal Mega Mart Limited in the dropbox
4) Write the application number
5) Add the PAN card ID
6) Click on 'I am not a Robot' and hit search button
Investors can also check the allotment status on the online portal of KFin Technologies Limited (https://kosmic.kfintech.com/ipostatus), the registrar to the issue.
The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, as per the prospectus. The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatching and uploading refunds, and attending to all investor-related queries.
1) Go to the web portal of KFin Technologies Limited
2) Select the IPO in dropbox whose name will be populated only if the allotment is finalized
3) You may be required to select either one of the three modes: Application number, Demat Account number, or PAN ID
4) In application type, select between ASBA and non-ASBA
5) Enter the details of the mode you selected in Step 2
6) For security purposes, fill the captcha accurately
7) Hit submit.