DMart stake sale to fetch Rs 3,500cr

Bengaluru: Radhakishan Damani and other promoters of Avenue Supermarts informed the exchange they would be selling 2.28% stake or 1.5 crore shares of the company in a Rs 3,500-crore deal. The company that owns supermarket chain DMart will over a period of few days offload shares through an offer for sale (OFS). TNN

The stake is likely to be priced at 5% discount to Wednesday’s close price of Rs 2,482 and is being done to meet Sebi’s requirements on the minimum public shareholding requirement. At the end of this exercise, the promoters’ stake in the company will come down to 75% from 79%.

Earlier this month, Avenue Supermarts sold 2 crore shares at an issue price of Rs 2,049, reducing promoters’ stake to 77.27%. It had been 79.73% as of December 2019. Avenue Supermarts shares have surged 730% from its IPO price of Rs 299 in March 2017 — making founder Radhakishan Damani the sixth-richest Indian with a net worth of $12 billion after the company’s stock price hit record highs. The company’s shares rose over 2% to Rs 2,542 on Thursday on the BSE.