Vishal Mega Mart: HDFC MF schemes buy shares, now own 5.94% stake

Vishal Mega Mart Ltd on Thursday informed stock exchanges BSE and NSE that a dozen HDFC Mutual Fund schemes acquired 15,00,00,456 shares or 3.23 per cent stake via open market operations on Tuesday, June 17, taking their total ownership in the retailer 5.94 per cent or 27,59,79,415 shares. 

The schemes included HDFC Business Cycle Fund, HDFC Value Fund, HDFC Dividend Yield Fund, HDFC Balanced Advantage Fund and HDFC Large and Mid Cap Fund. Others included HDFC Small Cap Fund, HDFC Large Cap Fund and HDFC Mid-Cap Opportunities Fund.

Before this, HDFC MF schemes held 12,59,78,959 shares or 2.71 per cent stake in Vishal Mega Mart, the company informed stock exchanges.  

To recall, promoter entity Samayat Services LLP had sold 900,000,000 equity shares of face value of Rs 10 each of Vishal Mega Mart, representing 19.36 per cent of the total issued and paid-up equity share capital of the company, through bulk deals on the platforms of the National Stock Exchange of India Limited on June 17, 2025. 
Samayat Services LLP held 3,42,74,77,956 shares or 73.75 per cent stake before the stake sale. It is now left with 2,527,477,956 shares or 54.38 per cent stake in the company.  

In FY25, the four publicly listed value retailers — Vishal Mega Mart, V-Mart, Style Bazaar, and V2 Retail — collectively posted a 24 per cent revenue increase, supported by a 16 per cent rise in retail space and robust double-digit same-store sales growth (SSSG). V2 Retail (V2REL) emerged as a standout performer, expanding its store area by 60 per cent and achieving a 29 per cent SSSG, well ahead of its peers, whose SSSG ranged between 12 and 13 per cent.

In a note on fashion retailers released Monday, MOFSL stated that the margin profile of value retailers improved in FY25, with blended gross margins for listed players expanding by 50 basis points (bps) year-on-year (YoY) to 29 per cent. This compares to a 150 bps increase in the fourth quarter, reflecting an improved product mix, stronger sales at maximum retail price (MRP), and greater procurement efficiencies.

Among peers, Vishal Mega Mart (VMM) posted the highest gross margin expansion, up 80 bps YoY in FY25 and 180 bps YoY in Q4. The gains were attributed to a rising contribution from private-label brands. MOFSL also noted that VMM’s Pre-Ind AS EBITDA margin rose by 180 bps YoY to 8.2 per cent — the highest in recent years — supported by enhanced sourcing (including a larger private-label mix and vendor consolidation), operating leverage, and more efficient inventory turnover.