Vishal Mega Mart Shares Surge 5% After Promoter Sells ₹10,500 Crore Stake via Block Deal
What Happened?
On June 18, 2025, Vishal Mega Mart (VMM) saw its share price rise ~5% to ₹133.10 in intraday trading on the BSE.
The rally followed the block deal on June 17, in which promoter entity Samayat Services LLP sold a 20% stake (90 crore shares) valued at ₹10,500 crore .
The deal attracted strong interest from institutional investors, with SBI, HDFC, and Kotak Mahindra Mutual Funds collectively acquiring over 32 crore shares (₹3,636 crore)
Market Reaction
June 17: hares plunged ~8%, falling to ₹115.10 on investor nervousness
June 18: The stock rebounded ~5% to ₹133.10, reflecting renewed investor confidence despite the big promoter offload.
Why It Matters
Promoter exit vs market confidence: While a large promoter sell-off can signal liquidity or exits, the upbeat price reaction suggests strong underlying investor faith in Vishal Mega Mart’s business fundamentals.
Institutional trust: Heavy participation by major mutual funds indicates belief in the company’s long-term growth trajectory.
Price stability: A quick bounce back after the block deal highlights market resilience and effective absorption of the equity dilution.
Investor FAQs
1. Why did the stock fall 8% on June 17?
The sharp drop to ₹115 was driven by investor uncertainty following announcements of the large promoter stake sale
2. What caused the 5% rebound on June 18?
Institutional investor participation and market optimism regarding Vishal Mega Mart’s future growth helped fuel the recovery.
3. Who bought the shares?
Top mutual funds—SBI, HDFC, and Kotak Mahindra—bought over 32 crore shares (~₹3,636 cr) as part of the 90 crore-share deal.
4. Should investors be concerned about the promoters reducing their stake?
While promoter stake reduction may raise questions, the strong institutional backing suggests confidence in the business. It could also pave the way for greater free float and future capital moves.
5. Does this indicate an exit by the promoters?
Not necessarily. Promoter stake sales via block deals can be for strategic reasons such as deleveraging or enabling institutional participation—not always full exits.