Avenue Supermarts, the parent company of DMart, saw its share price drop by 3.50 per cent on Friday morning as the company’s promoters geared up to sell part of their stake in the company through an offer for sale or OFS.
Avenue Supermarts, the parent company of DMart, saw its share price drop by 3.50 per cent on Friday morning as the company’s promoters geared up to sell part of their stake in the company through an offer for sale or OFS. Promoters announced on Thursday that they will sell 14.8 million shares or 2.28 per cent of their stake in the company on February 14 to non-retail investors and on February 17 to retail investors and non-retail investors. Avenue Supermarts share price fell to trade at Rs 2,455 down from its previous close of Rs 2,544.
Promoters of the company Radhakishan Damani, Gopikishan Damani, Shrikantadevi R. Damani, and Kirandevi G. Damani will sell their shares at a floor price of Rs 2,049 which is 19.45 per cent less than the closing price of the share on Thursday. However, no discount will be offered for retail investors who will be able to get 10 per cent of the shares on sale. With the stake sale at DMart is expected to bag more than Rs 3,000 crore.
Ace investor Radakishan Damani and his family, after the stake sale, will hold 75 per cent stake in the company after the stake sale. With the qualified institutional placement (QIP) which saw Avenue Supermarts mop up Rs 4,038 crore. Promoters of Avenue Supermarts will now be in line with the 25 per cent public shareholding norms of SEBI. The deadline to increase the public float of the company is set to expire next month.
Avenue Supermarts had recently collected Rs 4,038 crore by issuing a QIP of shares which the company plans to use for increasing DMart stores in the country. Among the investors are Lone Cypress and Singapore Government. DMart has now crossed the Rs 1.50 lakh crore mark in terms of market capitalisation, and has overtaken big-wigs such as Nestle, Bajaj Finserv and Wipro.