The much-anticipated Vishal Mega Mart IPO shares are set to debut on the stock exchange today, with investors eagerly awaiting robust listing gains. The IPO, which raised ₹8,000 crore, received an overwhelming subscription of 27.28 times during its three-day bidding period, reflecting strong investor interest. Analysts are now advising investors on whether to book profits, hold for long-term gains, or accumulate shares post-listing.
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Vishal Mega Mart IPO: Key Highlights
- Grey Market Premium (GMP): The shares of Vishal Mega Mart are trading at a 25% premium in the grey market, signaling strong demand and positive sentiment ahead of the listing.
- IPO Details: The IPO was priced in the range of ₹74-78 per share and was entirely an offer for sale by the promoter entities. The company raised ₹2,400 crore from anchor investors as part of the public issue.
- Business Overview: Vishal Mega Mart operates 645 stores across India, catering primarily to middle and lower-middle-class consumers. The company offers a wide range of products, including private labels and third-party brands, and has demonstrated consistent revenue and profitability growth.
Should You Buy, Sell, or Hold Vishal Mega Mart Shares?
1. For Conservative Investors
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, recommends booking profits if the stock lists with a gain of 25% or more over the IPO price. He advises cautious investors to capitalize on the listing gains, given the potential for short-term volatility in the market.
2. For Long-Term Investors
For those with a long-term perspective, analysts suggest holding onto the stock despite short-term fluctuations. Narendra Solanki, Head of Fundamental Research at Anand Rathi, highlights the company’s strong financials and growth potential. At the upper price band, Vishal Mega Mart is valued at a P/E ratio of 67.83x and an EV/EBITDA of 28.1x, with a post-issue market cap of ₹35,168 crore.
3. Missed the IPO?
For investors who missed out on the IPO allotment, Tapse suggests accumulating shares on dips after the listing. Profit booking by early investors is likely to create opportunities for new entrants to buy the stock at a more attractive price.
Financial Performance and Growth Prospects
Vishal Mega Mart has delivered impressive financial results, making it an attractive investment for the long term:
- Revenue Growth: The company’s revenue grew at a CAGR of 26.3%, reaching ₹8,911.95 crore in FY24 from ₹5,588.52 crore in FY22.
- EBITDA and Profit: EBITDA rose to ₹1,248.6 crore, while profit stood at ₹461.94 crore in FY24.
- Market Position: As a leading hypermarket chain in India, Vishal Mega Mart is well-positioned to benefit from the growing demand for organized retail in the country.
Akriti Mehrotra, Research Analyst at StoxBox, advises investors to hold their positions for medium to long-term gains, citing the company’s strong financial performance and growth potential.
Vishal Mega Mart IPO: Analyst Recommendations
- Short-Term Strategy: Analysts like Shivani Nyati, Head of Wealth at Swastika Investmart, suggest booking profits if the stock lists with a 25% or higher premium.
- Long-Term Strategy: Narendra Solanki and Akriti Mehrotra recommend holding the stock for long-term gains, given its strong fundamentals and growth trajectory.
Conclusion
The Vishal Mega Mart IPO listing is expected to deliver strong gains, with a grey market premium of 25% indicating robust investor interest. While short-term investors may book profits, long-term investors are advised to hold the stock for sustained growth.
Read More: MobiKwik IPO Allotment Status: How to Check Your Details Online via Link Intime, NSE & BSE
FAQs
1. Should I buy, sell, or hold Vishal Mega Mart IPO shares?
If the stock lists with a 25% or higher premium, conservative investors should consider booking profits.
Long-term investors can hold the stock, as analysts expect consistent growth in revenue and profitability.
Those who missed the IPO can accumulate shares on dips post-listing.
2. Has the One Nation, One Election bill been passed?
No, the One Nation, One Election bills have been approved by the Union Cabinet but are yet to be passed in Parliament. If passed without amendments, synchronized elections could begin in 2034.
