Vishal Mega Mart`s $943 million India IPO fully subscribed on second day of share sale
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Indian budget retailer Vishal Mega Mart's 80-billion-rupee ($943 million) initial public offering (IPO) was fully subscribed on day two of bids, led by demand from non-institutional investors.
The issue, which runs from Dec. 11-13, received bids for 835.5 million shares as of 1440 IST, compared to the 756.8 million shares on offer sold by existing shareholder Samayat Services. The company will offer no new shares in the IPO.
The portion for retail investors was subscribed 0.93 times, while the non-institutional part was subscribed 2.5 times.
The company is the latest to join a growing list of firms tapping the country's bustling capital market, in which more than 300 companies have raised $17.5 billion so far in 2024 - more than double the amount raised last year, data compiled by LSEG showed.
Vishal Mega Mart, which sells groceries and clothes for as low as 99 rupees (just over $1), is a relatively small player in India's $600 billion grocery and supermarket industry that is led by the likes of Reliance Retail, DMart and Tata Group's Star Bazaar.
A rapid boom in quick commerce - where customers can receive goods as soon as 10 minutes - has hurt these supermarket chains.
However, analysts say Vishal Mega Mart, which has 70% of its stores in smaller cities where quick commerce is still coming up, is likely to be less affected.
At the upper end of the IPO's price band of 74-78 rupees, Vishal Mega Mart could be valued at about 351.68 billion rupees ($4.14 billion).
Its shares are likely to begin trading on Dec. 18.
On Tuesday, the company allocated shares worth nearly 24 billion rupees to so-called anchor investors such as the Government of Singapore and funds of JP Morgan and HSBC.
($1 = 84.8600 Indian rupees)
