The Nomura India Investment Fund has recently bought a big chunk of shares in Vishal Mega Mart, which just went public. They spent Rs 324.96 crore, purchasing 3 crore shares at Rs 108.32 each on the National Stock Exchange (NSE). Vishal Mega Mart’s shares hit the market on Wednesday, opening at a higher price than expected—33.3% more at Rs 104 on the NSE and 41% more at Rs 110 on the Bombay Stock Exchange (BSE). By the end of the day, the stock was up by 43.5% from the initial price.
Even though the entire sale was from existing shareholders, many investors showed interest, especially big financial institutions, who bid more than 85 times the available shares. On the other hand, ordinary retail investors were a bit cautious since the sale was entirely from existing investors.
Vishal Mega Mart aims to serve the middle and lower-middle-income groups in India, focusing on areas that lack good retail options. They offer a wide range of products at affordable prices, which helps them attract and keep customers.
Experts believe that because the market is looking better and other factors are in play, the company’s shares could rise by 20-25% from their starting price. Prashanth Tapse, a senior research analyst at Mehta Equities, suggests that cautious investors who got shares should think about selling if prices go up by 25%. Long-term investors might want to hold onto their shares despite any ups and downs in the market. Those who didn’t get shares now could consider buying them if prices fall after the initial excitement fades.
By around 11:20 AM, Vishal Mega Mart’s shares were down by 3.12%, trading at Rs 108.46 on the BSE.
(Disclaimer: The opinions and suggestions from experts are their own and do not represent the views of Niftystat.)
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