The Initial Public Offering (IPO) of Vishal Mega Mart, a leading player in the retail market, will be open for registration from December 11 to December 13, 2024. The company has set a price band of Rs 74 – Rs 78 per share. . The total issue size of Vishal Mega Mart IPO is Rs 8,000 crore which is the offer for sale (OFS). Investors can bid for a minimum share size of 109 shares and in multiples thereof. The issue allocation ratio is set at 50 percent, 35 percent, and 15 percent for Qualified Institutional Investors (QIBs), retail investors, and Non-Institutional Investors (NIIs), respectively. Here’s why analysts recommend long-term investors.
Why analysts recommend Vishal Mega Mart IPO as a long-term investment
Analysts at SBI Securities suggested the IPO bid from a long-term perspective due to the company’s presence in all product categories and stores across India and has a track record of profitable growth.
Vishal Mega Mart is doing better than its competitors like Avenue Supermarts (DMart). “The company is making a better EBITDA margin and PAT on par compared to its larger peer Avenue Supermarts,” the trader said.
Analysts at SBI Securities have recommended investors to subscribe to the issue at a discounted long-term price.
Meanwhile, another brokerage, Bajaj Broking revealed that FY25 earnings calculated on fully diluted post-IPO paid-in equity, asking price is in line with P/E of 69.03.
The brokerage also said the issue price of Vishal Mega Mart is firmly priced based on FY24 earnings. The brokerage, however, recommends using it from a long-term horizon.
Domestic broker, Ashika Stock Broking said “As per estimates, at a higher price, the company is looking for a P/E multiple of 69.2x post-issue H1FY25 annualized EPS and an EV/EBITDA multiple of 28.1x. ‘Subscribe’ the estimate from the period long.
Important details of Vishal Mega Mart IPO
BRLMS and registrar
The IPO is managed by several leading wealth management companies such as Jefferies India, JPMorgan India, Morgan Stanley India, Kotak Mahindra Capital, ICICI Securities, and Intensive Fiscal Services. The official registrar of the IPO is KFin Technologies.
Important dates
As mentioned earlier the IPO will open for registration on Wednesday, December 11, 2024, and close on Friday, December 13, 2024. The allotment basis will be finalized on Monday, December 16, 2024. The stock will start trading – BSE and NSE – on Wednesday, December 18, 2024.
