Vishal Mega Mart Shares Drop 9% on Promoter Stake Sale News

On Tuesday, Vishal Mega Mart shares fell 9 percent in intraday trade, touching a day’s low of Rs. 113.50 on NSE as its promoter entity, Samayat Services LLP, which is backed by Kedaara Capital and Partners Group, launched a major block deal to offload a significant stake in the company. As per various reports, the promoter planned to sell a 10 percent stake, aiming to raise around Rs. 5,057 crore, but the deal was later upsized, and as per CNBC TV18, there was a trade worth Rs. 10,488 crore of 91 equity shares at Rs. 115 per share, which is around a 7.9 percent discount to the last closing price. This move is seen to unlock value and increase liquidity in the stock, following the company’s recent public listing.

Vishal Mega Mart made its stock market debut on December 18, 2024, after a highly anticipated Rs. 8,000 crore initial public offering (IPO) that was oversubscribed 28.75 times. The IPO was entirely an offer-for-sale by the promoter, with no fresh issue of shares, and it was listed at an issue price of Rs. 78 per share. On listing day, the stock listed at 33.33 percent on the bourses, reflecting strong investor demand and confidence in the company’s business model.

VMM delivered robust financial results for FY25, underscoring its operational strength and market positioning. For the Q4FY25, the company reported an 88 percent year-on-year jump in net profit to Rs. 115 crore, with revenue from operations rising over 23 percent to nearly Rs. 2,548 crore. The company’s EBITDA for the quarter rose by almost 43 percent year-on-year to Rs. 357 crore. Same-store sales growth (SSSG) stood at a healthy 13.7 percent, which reflects strong consumer demand and merchandising strategies. For the full year, consolidated revenue reached Rs. 10,716 crore, with profit after tax climbing to Rs. 632 crore.

The company’s focus on private label products has been one of the key drivers of profitability, with in-house brands accounting for around 73% of total revenue in FY25. Vishal Mega Mart’s quick commerce platform has also contributed to growth, with the service now available in 656 stores across 429 cities and a registered user base of around 8.7 million.

Looking ahead, Vishal Mega Mart plans to pursue an aggressive expansion strategy, particularly in Tier 2, Tier 3, and smaller cities, while leveraging a cluster-based model to deepen market penetration. In FY25, the company added 85 net new stores, bringing its total footprint to 696 stores. The MD and CEO of Vishal Mega Mart, Gunender Kapur, highlights a commitment to making aspirations affordable for India’s rising middle class while focusing on affordable, quality products and a differentiated customer experience.

The company continues to strengthen its omnichannel presence by integrating brick-and-mortar stores with digital platforms, thereby improving customer convenience and engagement. Its private label portfolio, spanning apparel, general merchandise, and FMCG, remains central to its value proposition while enabling competitive pricing and higher margins. They are also investing in supply chain efficiencies, vendor consolidation, and technology to support their rapid growth and maintain profitability.