Samayat Services Set to Offload Vishal Mega Mart Stake at ₹110/Share in Major Block Deal

In a significant development for India’s retail sector, Samayat Services LLP—the promoter entity behind Vishal Mega Mart—is preparing to sell a sizeable portion of its stake in the company through a high-profile block deal, with shares priced at ₹110 each. This move comes just months after Vishal Mega Mart’s successful IPO and signals a new phase for the hypermarket giant.

 

Key Highlights:

 

Block Deal Details:

Samayat Services LLP, which currently holds a 74.5% stake in Vishal Mega Mart, has launched a block deal to sell around 10% of its holding. The floor price for the transaction is set at ₹110 per share, representing an 11.9% discount to the last closing price. The deal is expected to raise approximately $588 million.

 

IPO Recap:

Vishal Mega Mart made its stock market debut on December 18, 2024, listing at ₹110 per share—a 41% premium over its IPO issue price of ₹78. The IPO, entirely an offer-for-sale by Samayat Services, was oversubscribed 27.28 times, reflecting strong investor demand.

 

Advisors and Structure:

Kotak Mahindra Capital and Morgan Stanley are advising on the block deal, which is one of the largest secondary market transactions in the retail sector this year.

 

Company Performance:

Vishal Mega Mart continues to post robust financials, with revenue for the first half of the current fiscal rising 19% to ₹5,033 crore and profits up 30% to ₹254 crore.

 

Market Impact:

The sale will further diversify Vishal Mega Mart’s ownership base and could increase trading liquidity, while allowing Samayat Services to partially exit and realize gains post-IPO.

 

This strategic move underscores the growing investor appetite for India’s retail sector and sets the stage for Vishal Mega Mart’s next growth chapter.

 

Source: Moneycontrol, India Retailing, Economic Times, NDTV Profit