VISHAL Retail debuted on the bourses at a premium of 178% over the IPO price of Rs 270. The scrip opened at Rs 472, touched a high of Rs 809 and a low of Rs 423. The stock ended the day at Rs 752 on the BSE. About 1.14 crore shares were traded on the exchange. Brokers said the reason for the spectacular listing was that the IPO was perceived as having been attractively priced. The company had priced the offering at the top-end of the price band, following strong response to the issue. The issue was subscribed a massive 69 times. The proceeds of the issue would be used to establish new retail stores. Of the total 32 stores to be set up this year, the IPO will fund for the establishment of 22 stores. The company will deploy Rs 104.15 crore of the net issue proceeds for setting up the stores in the current financial year. The setting up of the remaining stores will be funded through internal accruals.
Toeing the value retail line, Vishal Retail sells goods at affordable prices by either manufacturing themselves or procuring them from small and medium-sized vendors. The target group of the company is middle and lower-middle income groups, which constitute a major portion of the demography in India. It also sells readymade apparels (including its own brands) and a wide range of household merchandise and other consumer goods.
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