DMart share price gained 2.52 per cent on Wednesday continuing its upward trajectory which has seen the stock jump 33 per cent since the start of this year.
DMart share price gained 2.52 per cent on Wednesday continuing its upward trajectory which has seen the stock jump 33 per cent since the start of this year. The recent spike came after the company informed the market regulator that its promoters, Radhakishan Damani and family, have reduced their shareholdings in the company to 74.99 per cent through an offer for sale (OFS) on February 14 and February 17. The public shareholding has now increased to 25 per cent in the company. The scrip was trading at Rs 2425 apiece at market closing.
“We, Radhakishan S. Damani, Gopikishan Damani, Shrikantadevi Damani, and Kirandevi G Damani have collectively sold 1,48,00,000 equity shares of the face value of Rs 10 each of Avenue Supermarts Limited representing 2.28 per cent of the total issued and paid-up equity share capital of the target company, through the stock exchange mechanism which took place on February 14, 2020, and February 17, 2020,” the promoters of Dmart said in a filing to the market regulator.
Before the sale of the said 1,48,00,000 shares, the promoters stake in the company stood at 77.27 per cent. Now the stake has been cut to 74.99 per cent, with more than 48.5 crore shares with the promoters. The OFS was opened for non-retail investors on February 14 and for retail investors on February 17. Radhakishan Damani sold the shares at a floor price of Rs 2,049 which was 19.45 per cent less than the closing price of the share a day before the OFS. No discount was offered for retail investors who were offered 10 per cent of the shares on sale.
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 the Singapore Government. According to media reports, DMart is planning to expand its footprint in northern India and plans to open stores in Delhi NCR.
According to Forbes’ Real-Time Billionaires’ Index, investor and retailer Radhakishan Damani is just behind Reliance Industries Ltd. chairman Mukesh Ambani, on the list of richest Indians. DMart share price has skyrocketed 293 per cent since the day it got listed in the Indian stock exchanges.