Explained: Why Vishal Mega Mart shares crashed 8% today

Vishal Mega Mart shares tanked by nearly 8% on Tuesday, hitting a low of Rs 115.10 in early trading on the BSE. Over the past five days, the stock has dropped by 8.83%. The main reason behind the sudden fall in Vishal Mega Mart's share price was the likely sale of a large stake by the company's promoter, Samayat Services LLP. Reports showed that Samayat Services may have sold around 20% of its equity in the company through a block deal.According to CNBC TV-18, about 91 crore shares changed hands at Rs 115 per share, valuing the transaction at roughly Rs 10,488 crore. However, the official details of the parties involved in the deal are not yet confirmed.Earlier news had suggested the promoter was planning to sell a smaller stake of 10% in the company through block deals. This was estimated to be worth Rs 5,057 crore and expected to be done at a floor price of Rs 110 per share. This price was about 12% lower than the closing price on Monday, which was Rs 124.90.On Monday, the shares ended the day with a small gain of Rs 1.15, or 0.93%.As of March 31, 2025, Samayat Services held a 74.55% stake in Vishal Mega Mart. The company is a mid-cap stock with a market value of Rs 58,096 crore and was listed on the stock exchanges on December 18, 2024.Despite the recent drop, Vishal Mega Mart's shares have done well overall this year. They have risen 18% in 2025 so far, outperforming the Nifty index, which has given a return of 5% year-to-date. Since the company's listing, the stock has gained 12%.Vishal Mega Mart is a retail company that operates a chain of hypermarkets in India. Its main focus is on offering a wide range of products at affordable prices, mainly targeting middle and lower-middle-income consumers. The company sells items across categories like clothing, general goods, and fast-moving consumer goods (FMCG) such as groceries, personal care products, and household essentials.The company's financial performance has been strong. For the quarter ending March 2025, Vishal Mega Mart reported a net profit of Rs 115.1 crore. This was an 88% increase from Rs 61.2 crore in the same quarter last year.Revenue from operations also rose by 23.2% to Rs 2,547.9 crore in the quarter, compared to Rs 2,068.9 crore in the corresponding period in 2024. The company's operating profit, measured by EBITDA, increased 42.6% to Rs 357 crore from Rs 250.5 crore a year earlier.The EBITDA margin, which shows the percentage of revenue converted into operating profit before interest, tax, depreciation, and amortisation, improved to 14% from 12.1% in the previous year's quarter.
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