The shares of a Mid-Cap company, specializing in offering a wide range of products across various categories, with a focus on fashion, general merchandise, and groceries, declined by upto 8 percent after promoter Samayat Services announced plans to sell shares worth up to ₹10,488 crore via a block deal.
With a market capitalization of Rs. 54,865.86 crores on Tuesday, the shares of Vishal Mega Mart Ltd declined by upto 7.8 percent, making a low of Rs. 115.10 per share compared to its previous closing price of Rs. 124.90 per share.
According to sources, Vishal Mega Mart Ltd, engaged in offering a wide range of products across various categories, with a focus on fashion, general merchandise, and groceries, is in focus after a massive block deal saw nearly Rs. 10,488 crore worth of shares, about 20 percent of the company’s outstanding equity likely changed hands at an average price of Rs. 115 per share.
The block deal, which followed the end of the company’s shareholder lock-in period, was led by promoter entity Samayat Services, backed by Partners Group and Kedaara Capital, which reportedly sought to sell up to 10 percent equity. The deal size was initially estimated at over Rs. 5,000 crore but was later upsized to nearly Rs. 9,900 crore as more shares became eligible for trading.
Vishal Mega Mart, which debuted on the stock market in December 2024, has seen strong gains since its IPO, but the large promoter stake sale triggered a sharp decline in its share price.
Financials & Others
The company’s revenue rose by 23.6 percent from Rs. 2,075.94 crore to Rs. 2,566.52 crore in Q4FY24-25. Meanwhile, Net profit rose from Rs. 61.22 crore to Rs. 115.11 crore during the same period.
The company has a low debt-to-equity ratio of 0.27, strong promoter shareholding above 65 percent, and has delivered an average 3-year revenue growth of 16.83 percent and net profit growth of 31.58 percent.
Vishal Mega Mart Ltd is one of India’s leading fashion-led hypermarkets, operating over numerous stores across the country. The company offers a wide range of products, including apparel, general merchandise, and fast-moving consumer goods (FMCG), catering primarily to middle and lower-middle-income consumers.
In FY25, Vishal Mega Mart added 90 new stores, expanding its presence to 458 cities with a total trading area of 12.2 million sq ft. The company is now present in 33 out of 50 Indian towns with populations over one million, leaving significant room to grow in 17 large towns such as Pune, Nashik, Ahmedabad, Cochin, and Baroda.
In smaller towns with populations under one million, Vishal Mega Mart operates in about 450 out of 1,250 towns, highlighting the potential to open around 800 additional stores as part of its ongoing expansion strategy.
Written by Sridhar J
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