Shares of retailer Vishal Mega Mart Ltd. sank over seven percent in early trade as reports suggested Samayat Services LLP, a promoter entity of Vishal Mega Mart, offloaded a stake worth Rs 10,488 crore in a block deal, according to multiple industry sources.
Around 91 crore shares or 20.2 percent equity in the firm was traded in the block deal window, at the price of Rs 115 per share, ahead of the opening bell on Tuesday, June 17. This represents a nearly 8 percent discount from the previous session's closing price.
At 9.17 am, shares of the firm sank 7.3 percent to Rs 115.6 per share on the NSE.
Earlier, the promoter entity was likely to pare its stake, selling 10 percent to raise $588 million or Rs 5,057 crore. However, CNBC-TV18 reported that the block deal has been upsized, with the promoter likely to sell shares worth Rs 9,896 crore now.
Kedaara Capital and Partners Group are the two private equity promoters of the leading fashion-led hypermarket brand. "The block deal has been launched. The floor price is Rs 110 per share, a 11.9 per cent discount to the last closing price," one of the persons quoted above told Moneycontrol.
Kotak Mahindra Capital and Morgan Stanley are the advisors for the proposed block trade, a second person added.
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According to the March quarter shareholding, the promoter, Samayat Services, holds around 74.6 percent in the firm. FIIs and DIIs hold 7 percent and 12.2 percent, respectively, while the public shareholding in Vishal Mega Mart is 6.2 percent.
Vishal Mega Mart reported an 88 percent on-year jump in net profit at Rs 115 crore for the January-March quarter of FY25, with Adjusted Same Store Sales Growth (SSSG) at 13.7 percent compared to 10.5 percent a quarter ago.
The company's revenue from operations grew over 23 percent YoY to nearly Rs 2,548 crore in Q4FY25 from Rs 2,069 crore a year ago. The retail major's EBITDA increased nearly 43 percent YoY to Rs 357 crore during the reported quarter, with adjusted EBITDA margin standing at 14 percent.
Over the past six months, shares of the firm have gained around 12 percent, as compared to a 2.5 percent uptick in the benchmark Nifty 50 index.
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