DMart’s OFS to open on Friday

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Published: February 14, 2020 5:25:42 AM

Avenue Supermarts, which owns and operates DMart, will issue 1,48,00,000 equity shares through the OFS.

Avenue Supermarts, which owns and operates DMart, will issue 1,48,00,000 equity shares through the OFS.

Radhakishan Damani-promoted Avenue Supermarts is aiming to raise around Rs 3,000 crore through the offer for sale (OFS) route. The OFS will commence on Friday and will remain open till Monday. The promoters will be offloading 2.28% of their equity stake through the OFS route in order to achieve the minimum public shareholding norms of the Securities and Exchange Board of India.

Avenue Supermarts, which owns and operates DMart, will issue 1,48,00,000 equity shares through the OFS. The floor price per equity share is set at Rs 2,049. The first day of the issuance will be reserved for non-retail investors. Retail investors can bid for equity shares worth Rs 2 lakh on February 17. From the total shares being issued through the OFS route 10% of the shares will be allocated to the retail investors.

Kotak Securities, Axis Capital, DSP Meryll Lynch and HSBC Securities and Capital Markets are brokers for the issue.
Avenue Supermarts tapped the capital markets earlier this week to raise Rs 4,038 crore through the qualified institutional placement (QIP)of shares, which it plans to use for DMart’s store expansion.

After the stake sale undertaken through the QIP, Radhakishan Damani, the promoter of Avenue Supermarts, became the sixth richest person in India. The promoter shareholding in the company after the QIP and OFS will come down to 75%.

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