Vishal Mega Mart’s initial public offer was subscribed over 27 times on the last day of the issue with bids coming in for over 2,064 crore shares as against the 75.7 crore shares on offer.
An overwhelming number of bids came in from qualified institutional buyers (QIBs), the portion being subscribed nearly 81 times.
Non-institutional investors bid for 231 crore shares, with the category bidding for more than 10 lakh shares each accounting for a good part of the demand, being subscribed over 16 times.
Demand from retail investors was relatively tepid being subscribed only 2.3 times, despite the modest price band of ₹74-78 a share and a minimum lot size of 190 shares.
The demand graph showed that bids were almost similar at different price points across the band though marginally higher at the lower end of the band.
In the grey market, the premium fell to ₹17 on the last day of the bidding, compared to ₹22 on Thursday. The grey market premium has been fluctuating and has come down from ₹25 on December 10, the day before it opened.
The retailer’s ₹8,000 crore IPO is entirely through an offer for sale by its promoter.
Targeted towards the middle and low income consumers, the retailer has a significant presence in tier-II cities with a store network of around 645 at the end of September.
Despite a dip in discretionary demand among urban consumers in the country, the company has managed decent growth at over 12 per cent across its three main categories of apparel, general merchandise and FMCG.