V-Mart sizzles following RBI nod
Mayuresh Deshmukh / 24 Dec 2015
The Reserve Bank of India (RBI) allowed foreign institutional investors (FII) to invest up to 49 per cent of the paid up capital of V-Mart Retail.
The Reserve Bank of India (RBI) allowed foreign institutional investors (FII) to invest up to 49 per cent of the paid up capital of V-Mart Retail. The company informed stock exchanges today. The investment is under the portfolio investment scheme. The purchase can be made through primary market and stock exchanges.
Shareholding by FIIs in V-Mart has gone below the revised threshold limit. Hence the restrictions placed by RBI on the purchase of shares of the above the limit are withdrawn with immediate effect. The FII investment in September 2015 stood at 23.09 per cent compared to 23.12 per cent in June 2015. The DII investment increased from 6.77 per cent in June 2015 to 6.99 per cent in September 2015.
On December 24 at the time of filing this report, the stock of the company was trading at Rs.585, an increase of 19.55 percent from the previous close. As RBI increased FII limit, the demand for the stock will increase in the market which will give further boost to the share price in upcoming period.
On the financial front, total consolidated operating revenue of V-Mart for FY15 stood at Rs.721 crores an increase of 25.31 percent compared to Rs 575 crores in FY14. EBITDA of the company is at Rs.46.3 crores an increase of 126.52 percent and EBITDA margin is of 6.43 percent compared to 3.56 percent for same period last year. The substantial increase in EBITDA is driven by good operational efficiency of the company. The net profit of the company for FY15 stood at Rs 37.37 crores an increase of 48.53 percent on yearly basis.
The company is increasing its presence across the country at a rapid pace. In November, V-Mart opened its 122th store in in Muzaffarpur, Bihar. This is the 15th store this year. An increase of 14 per cent on yearly basis.
V-Mart Retail is engaged in the business of value retailing through the chain of stores situated at various places in India. It offers products across three verticals, which include apparel, general merchandise and kirana bazaar. It retails readymade garments and accessories.
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