The Nomura India Investment Fund Mother Fund has picked up a stake in the recently listed Vishal Mega Mart through a bulk deal on Wednesday, buying a stake worth Rs 324.96 crore.
Nomura purchased 3 crore shares of the company on the NSE at a price of Rs 108.32 a piece, according to data available on the exchange website.
Shares of Vishal Mega Mart were listed on the exchanges on Wednesday at a healthy premium of 33.3 per cent, priced at Rs 104 on the NSE and a premium of 41 per cent on the BSE at Rs 110. Later, the stock slightly extended its listing gains and settled 43.5 per cent higher from its IPO price.
Despite the offer being entirely an OFS, Vishal Mega Mart received healthy demand from all categories of investors, especially from the QIB category, which bid more than 85 times. However, retail investors showed less interest due to concerns over the OFS.
The company focuses on catering to India’s growing middle- and lower-middle-income demographics, strategically targeting underpenetrated markets. It leverages its diversified merchandise mix and value pricing to attract and retain customers, offering high scalability through its business model.
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“Considering improving market sentiment and all other parameters, the company can list with a decent gain in the range of 20-25 per cent from its issue price,” said Prashanth Tapse, Sr. VP Research – Research Analyst, Mehta Equities.
Tapse advised conservative investors who were allotted shares to consider booking profits above 25 per cent. “Long-term investors should consider holding the company for the long term, despite potential short-term volatility and market risk. Non-allotted investors should consider accumulating shares if there are dips post-listing due to profit-booking attempts,” he said.
Around 11:20 am today, shares of Vishal Mega Mart were trading 3.12 per cent lower at Rs 108.46 on the BSE.
