V-Mart Retail IPO subscribed 1.19 times

The IPO of 'V-Mart Retail Limited' has been subscribed 1.19 times. The Qualified Institutional Buyers portion was subscribed 1.52 times, Non Institutional Investors segment 1.39 times and Retail Individual Investors portion 0.79 times.

'V-Mart Retail Limited, is one of the pioneers in setting up stores across various small Indian towns and cities including Sultanpur, Ujjain, Motihari (Source: Indian Retail Industry 2012 - CARE Research). V-Mart primarily operate in Tier-II and Tier-III cities, with a chain of "value retail" departmental stores offering apparels, general merchandise and kirana, catering to the entire family. Based in New Delhi, the Company's operations are spread across northern, western and eastern parts of India. The Company currently own and operate 62 stores spread across 53 cities and 10 states and union territories, with a total area of 5.06 lac Sq. Ft. In October, 2003 the Company opened its first store by the name of "V-Mart" at Ahmedabad, Gujarat. The company's stores are located in New Delhi, Gujarat, Uttar Pradesh, Bihar, Punjab, Chandigarh, Haryana, Jammu and Kashmir, Rajasthan and Madhya Pradesh. The average size of the store is approximately 8,000 Sq. Ft.

The Company has established stores in Metro, Tier-I, Tier-II and Tier-III cities which are primarily located as standalone stores in high-street areas and shopping hubs of such cities. The Company follows the concept of "value retailing" to target the strata of the population belonging to the expanding "aspiring class" and "middle class" based on the customer's socio-economic conditions, purchasing power, demographic details and customer trends. The Company believes its offerings in untapped markets, provide its customers with a different shopping experience, comprising of a vast range of value retail products under a modern ambience and feel of a large retail mall.

The Issue has been graded by CARE Limited as IPO Grade 3/5, indicating that the fundamentals of the IPO of the Company are average. The Price Band has been fixed at Rs 195 to Rs. 215.

The Equity Shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.

Anand Rathi Advisors Limited is the sole Book Running Lead Manager (BRLM) to the Issue and Karvy Computershare Private Limited is the Registrar to the Issue.

Source : Equity Bulls

Keywords