Shares of Vishal Mega Mart Ltd. saw a sharp sell-off during early trade on Tuesday, June 17, 2025, following a large block deal involving promoter entity Samayat Services LLP. The trade, which occurred before market hours, involved the exchange of 91 crore shares—representing a significant 20.2% equity stake in the fashion-led hypermarket operator—at a price of Rs 115 per share. The transaction size was pegged at approximately Rs 10,488 crore, and the pricing implied a substantial 8% discount compared to the stock’s previous closing price. The unexpected magnitude of the deal triggered nervousness among retail and institutional investors, leading to an immediate 7.3% drop in the share price to Rs 115.6 on the National Stock Exchange (NSE) by 9:17 a.m.
Highlights
Vishal Mega Mart stock dropped 7.3% after a large block deal.
Promoter entity Samayat Services LLP offloaded a 20.2% stake.
Block deal valued at Rs 10,488 crore, priced at Rs 115 per share.
Shares traded at an 8% discount to previous closing price.
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Promoter Stake Dilution Surpasses Earlier Estimates Amid Growing Liquidity Push
The scale of the promoter’s stake sale surprised market participants, as initial reports had suggested a relatively modest 10% dilution to raise around Rs 5,057 crore. However, the eventual transaction nearly doubled in size, with CNBC-TV18 confirming that the block deal had been upsized to Rs 9,896 crore in traded value before official disclosures indicated an even higher amount of Rs 10,488 crore. This development signals an aggressive exit strategy by Samayat Services LLP, a holding entity for private equity backers Kedaara Capital and Partners Group. Market sources indicate that the deal was launched with a floor price of Rs 110 per share, implying a discount of 11.9% to the last traded price, making it attractive for institutional investors seeking entry at a valuation markdown. The timing of the stake reduction suggests a strategic realignment or liquidity event for the PE promoters amid favourable market conditions.
Highlights
Initial block size expected at 10% stake; eventually increased to over 20%.
Kedaara Capital and Partners Group are behind Samayat Services LLP.
Block deal launched at Rs 110 per share, marking 11.9% discount to LTP.
Indicates a significant promoter exit or capital reallocation strategy.
Advisory Role of Kotak Mahindra Capital and Morgan Stanley in Strategic Block Sale
Investment banks Kotak Mahindra Capital and Morgan Stanley were appointed as financial advisors to facilitate the Rs 10,488 crore block deal, ensuring swift execution through negotiated bulk trades. The deal’s structuring allowed for rapid offloading without disrupting secondary market liquidity, and the steep discount was likely instrumental in attracting interest from large institutional investors. These advisors have reportedly tapped several long-only funds and sovereign entities to absorb the shares. Analysts note that such block deals are often used to bring in new institutional shareholders, broadening the investor base while providing monetization opportunities for legacy investors. Given the stock’s prior six-month rally of 12%, this exit also reflects an attempt by promoters to lock in gains while global liquidity conditions remain accommodative.
Highlights
Kotak Mahindra Capital and Morgan Stanley advised on the deal.
Block structure enabled rapid execution and large institutional absorption.
Discount pricing helped attract long-term institutional funds.
Seen as a strategic move to diversify shareholding post-promoter exit.
Company Fundamentals Remain Strong: Q4FY25 Results Show Robust Growth
Despite the stock’s sharp fall on Tuesday, Vishal Mega Mart’s fundamental performance in the January–March quarter of FY25 was notably strong. The company reported an 88% year-on-year jump in net profit to Rs 115 crore, underpinned by solid operational leverage and improved store productivity. Adjusted Same Store Sales Growth (SSSG) rose to 13.7%, up from 10.5% in the prior quarter, reflecting healthy consumer demand and efficient inventory management. Revenue from operations surged over 23% year-on-year to Rs 2,548 crore, while EBITDA climbed nearly 43% to Rs 357 crore. The adjusted EBITDA margin for the quarter stood at an impressive 14%. This robust performance aligns with the retailer’s continued expansion in India’s Tier II and Tier III markets, where it has maintained strong brand positioning.
Highlights
Net profit surged 88% YoY to Rs 115 crore in Q4FY25.
Adjusted SSSG improved to 13.7%, up from 10.5% in Q3.
Revenue from operations rose 23% YoY to Rs 2,548 crore.
EBITDA increased 43% with margins holding at 14%.
Ownership Profile and Market Response to Promoter Exit
According to the March quarter shareholding data, Samayat Services LLP held 74.6% of Vishal Mega Mart’s equity prior to the block deal. With approximately 20.2% sold, the promoter stake now stands closer to 54.4%, retaining majority control while allowing for broader institutional participation. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 7% and 12.2%, respectively, while retail and other public shareholders account for just 6.2%. Analysts suggest that the promoter’s move to reduce holdings—despite the company’s healthy financials—could trigger temporary volatility, although the long-term outlook remains constructive given the company’s market leadership and growth prospects. The significant equity float created by this deal may also improve liquidity and attract passive inflows from index funds in future rebalance cycles.
Highlights
Promoter stake fell from 74.6% to ~54.4% post block deal.
FIIs and DIIs collectively hold about 19.2% in the company.
Public float expected to rise, improving market liquidity.
Analysts view exit as valuation-related, not operationally driven.
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