Vishal Retail, owner of Vishal Mega Mart chain, on Wednesday got listed at Rs 472.50 on the Bombay Stock Exchange (BSE) with a premium of 75 per cent over its issue price of Rs 270.
Within minutes of listing the shares of the company touched a high of Rs 809 and over 8.25 lakh shares exchanged hands on the BSE.
The scrip was trading at Rs 757 at 10 am on the exchange.
On the National Stock Exchange, the scrip listed at Rs 472.50. It witnessed a high of Rs 780 and over 27.88 lakh shares got traded.
The company entered the bourses with 2,23,98,869 equity shares of Rs 10 each.
The initial public offer was subscribed about 39 times witnessing a demand of Rs 5,035 crore for 47.82 lakh equity share offered.
Shareholders of Vishal Retail include Bennett, Coleman and Co Ltd, which holds over nine per cent stake and HDFC Ltd, which has 0.89 per cent equity.
The proceeds of the issue would be utilised to establish new retail stores. Of the total 32 stores to be set up this year, the IPO would fund 22.
While the company would deploy Rs 104.15 crore of the net issue proceeds for setting up the stores in the current year, the remaining stores would be funded through internal accruals.
Vishal Retail currently operates 50 retail stores. It sells garments, apparels and FMCG products and focuses on tier II and tier III cities.