Vanguard has purchased more than 5.04 crore equity shares of the Gurugram-headquartered retail chain in two tranches, through its affiliates
Vanguard Group, a United States-based investment management major, has acquired a 1.1 per cent stake in Vishal Mega Mart for Rs 655.16 crore via open market transactions, according to bulk deal data released by the National Stock Exchange (NSE) on Friday
Vanguard, through its affiliates, purchased more than 5.04 crore equity shares of the Gurugram-headquartered retail chain in two tranches, at an average price of Rs 129.74 per share.
Following the development, shares of Vishal Mega Mart rose by 2.12 per cent, closing at Rs 128.80 apiece on the NSE.
While the identities of the share sellers in Friday’s transactions were not disclosed, the stake buy follows a significant offloading earlier in the week. On Tuesday, Samayat Services LLP, a promoter entity backed by Kedaara Capital and Switzerland-based Partners Group, divested a 19.6 per cent stake in Vishal Mega Mart for Rs 10,220.40 crore in a massive block deal.
The fresh investment by Vanguard signals growing foreign institutional interest in India’s retail sector, which has seen a resurgence in investor appetite due to rising consumption and expanding middle-class demand in tier-two and tier-three cities.
In a separate NSE bulk deal on Friday, Mumbai-based Hill Fort Capital also offloaded nearly 1 per cent stake in Westlife Foodworld, the operator of McDonald’s outlets in West and South India, for Rs 104 crore through open market transactions.
The deals reflect increased activity by institutional investors and private equity players looking to rebalance portfolios amid shifting market dynamics in the retail and food services sectors.
