One of India’s largest retail brands, Vishal Mega Mart, is already in the headlines before the stock market listed (IPO). On Tuesday, the company had a very large ‘block deal’, in which the company’s early and biggest investors have sold their entire stake. Since this news, there has been a stir in the business world.

What is this ₹ 1100 crore block deal?

Simply put, two big owners of Vishal Mega Mart – Switzerland’s investment firm ‘Partners Group’ and India’s ‘Kedara Capital’ – have sold all their shares in the company. The deal was around ₹ 1100 crore. Block deal means when a large number of shares are sold and sold at once.

Why did investors sell their stake?

This entire incident is to the soon upcoming IPO of Vishal Mega Mart.

• Profit recovery: Partners Group and Kedara Capital invested in Vishal Mega Mart many years ago. Now that the company is going to list in the stock market by bringing the IPO, these initial investors are withdrawing their money with great profits. This is called ‘pre-IPO exit’.

• Place for new investors: Through this deal, new big investors have come to the company, who will now support the company during the IPO.

What will be the effect on the market and the common man?

Although the shares of Vishal Mega Mart are not yet available in the market for the common people, this big deal has a profound impact.

• Valuation of the company: This deal gives an idea of ​​the current price of the company.

• Market Sentament: This news shows how excited the big investors are about the IPO.

• Effect on gray market: The news of this block deal saw a decline of up to 8% in the price of Grey Market of the company’s shares, as such a large selling always creates a pressure.

Now everyone’s eyes are on the IPO of Vishal Mega Mart, so that ordinary investors will also be able to become a part of this big retail company.