Vishal Mega Mart Share Price: What Next After Rs 10,500 Crore Stake Sale?

A mid-cap company that previously gained attention through a viral job advertisement is once again in the spotlight, this time in the stock market.

Vishal Mega Mart share price declined by nearly 7.5% in early trading on 17th June 2025, reaching an intraday low of ₹113.5. 

The movement followed the announcement of a massive block deal involving the sale of approximately 20% of the company’s stake by promoter entity Samayat Services LLP. 

So, what exactly is the aim behind the sale, and how does it affect shareholders? Let’s decode… 

About Vishal Mega Mart

Incorporated in 2001, Vishal Mega Mart is one of India’s largest hypermarket chains, offering a wide range of products including apparel, groceries, electronics, and home essentials. The company serves India’s middle- and lower-middle-income consumers through a network of 645 stores across 414 cities, supported by its e-commerce platform. 

Vishal Mega Mart operates across three major categories:

• Apparel: Exclusive in-house brands catering to men, women, children, and infants across categories.
• General Merchandise: A mix of own-brand and third-party products in home appliances, furnishings, toys, travel accessories, and footwear.
• FMCG: Packaged foods, staples, and personal care products.

(Source: Q4 Report)

The company has developed 26 in-house brands, which contributed 73% of FY24 revenue. Notably, 19 of its brands have surpassed ₹100 crore in sales, with six exceeding ₹500 crore. Ranked among India’s top three offline-first diversified retailers by retail space, Vishal Mega Mart leverages a hub-and-spoke distribution model to drive operational efficiency.

(Source: Company DRHP)

In December 2024, Vishal Mega Mart launched its ₹8,000 crore IPO as a book-built offer for sale (OFS), and it was subscribed 27.28 times by the closing day of bidding. 

Now, as the lock-in period for a portion of Vishal Mega Mart’s shares (254.2 crore) held by pre-IPO shareholders and anchor investors ended on 17th June 2025, a promoter of the company, Samayat Services LLP, announced the sale of 20% of its stake.

Details Of The Block Deal

As of 31st March 2025, Samayat Services held a significant 74.55% stake in the company. The promoter announced the sale of 20% of its stake in the company on 17th June 2025, with the deal involving 91 crore shares valued at approximately ₹10,488 crore. The transaction was executed in the early hours of the trading session at an average share price of around ₹115.

Source: ET

The possible reasons for the deal can be:

1. Profit Booking

The block deal allowed the private equity investors, Partners Group and Kedaara Capital, to monetise part of their holdings. Vishal Mega Mart shares had risen 18% in 2025 and 12% since listing, providing an opportunity to realise returns. 

Source: India Today

2. Increasing Liquidity

A secondary objective was to improve stock liquidity. Increasing the public float makes the stock more attractive to institutional investors and facilitates possible inclusion in key indices. Higher float and liquidity help sustain long-term demand and price stability.

3. Planned Partial Exit

This was not a complete exit; Samayat Services, the promoter entity, continues to hold a significant majority stake. The deal represents a calibrated strategy to monetise part of the investment while maintaining long-term alignment with the company’s growth prospects.

Market Impact Of Block Deal

As a result of the block deal, the share price of Vishal Mega Mart opened with a steep cut of nearly 7.49% from the previous day’s close of ₹124.85. As the trading session continued, the share price recovered from its intraday low of ₹113.50 to trade at Rs ₹119.85 as of 12:30 p.m. on 17th June 2025.

Source: Money Control

The transaction marks a partial stake sale by the promoter group, coinciding with the end of the post-IPO lock-in period for certain shareholders. Following the block deal, attention has also shifted to the company’s financial position.

Financial Snapshot of Vishal Mega Mart

For the fourth quarter of FY25, Vishal Mega Mart reported consolidated revenue from operations of ₹2,547.9 crore, reflecting a year-on-year growth of 23.2%. Its EBITDA stood at ₹208.1 crore with a margin of 8.2%, representing a 73.6% year-on-year increase, and the profit after tax (PAT) was ₹128.1 crore, up 109.9% year-on-year. Plus, the company recorded a same-store sales growth (SSSG) of 13.4%. 

Source: Financial Statements Of The Company

Additionally, other key profitability indicators also showed continued improvement.

The company’s return on equity (ROE) was reported at 9.9% for FY25, up from 8.2% in FY24, and the average ROE over three and five years stood at 8.5% and 7%, respectively. Plus, the return on capital employed (ROCE) for FY25 was 13.1%, compared to 14.2% in FY24. 

Lastly, the operational metrics also reflected a strong customer base, with approximately 95% of revenue generated from loyalty customers. 

Bottomline

The recent block deal involving an approximate ₹10,500 crore partial stake sale by the promoter entity, Samayat Services LLP, comes shortly after the expiry of the post-IPO lock-in period. While the transaction led to a temporary dip in Vishal Mega Mart’s share price, the recovery seen during intraday trade suggests active investor interest.

From a fundamental standpoint, Vishal Mega Mart continues to show consistent revenue growth, expanding profitability margins, and operational efficiency, supported by a strong, loyalty-driven customer base. The company remains debt-free and maintains a sizable presence across Tier 1 and Tier 2+ markets with a growing store network.

However, with changes in promoter shareholding and evolving market dynamics, it becomes important for investors to closely monitor future disclosures, institutional interest, and stock liquidity trends. Thus, as a potential or existing investor, it is suggested that you conduct thorough due diligence and assess both market movements and company fundamentals before making any investment decisions.

Happy Investing.

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