Avenue Supermarts share price slipped 8 per cent on Friday after the company announced that its promoter and billionaire investor Radhakishan Damani will sell up to 1 per cent stake in the company for an estimated sum of over Rs 888 crore. Avenue Supermarts operates the D-Mart stores. 

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Notably, the reason why behind this move is that Radhakishan Damani is having to sell shares to comply with minimum public shareholding requirements.

Reacting to the news, D-Mart share price tanked as much as 7.76 per cent to Rs 1379 on the BSE. This was the biggest intraday fall the stock witnessed since its listing last year in March. The scrip settled at Rs 1416.85, down 5 per cent. 

"Radhakishan Shivkishan Damani, one of our promoters, has conveyed to us his intention to sell the equity shares...Of the company to enable us to comply with the requirements of minimum public shareholding," Avenue Supermarts said in a BSE filing.

The company said Damani has proposed to sell up to 1 per cent of the total paid up equity share capital of the company aggregating to 62,40,844 shares.

Based on Avenue Supermarts' closing price today at Rs 1,416.85 apiece, sale of 62,40,844 shares will be for an estimated sum of Rs 884.23 crore.

Avenue Supermarts said share sale by Damani will be in the period beginning from May 21 to June 14 or the actual date of completion of sale of all equity shares, whichever is earlier.

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As per Sebi norms, every listed firm would need to maintain a public shareholding of at least 25 per cent. Listed public sector companies have been provided additional time till 21 August, 2018, to comply with the requirements.

The low-profile investor Damani made his way into the billionaire list and among the top 20 richest Indians, with a blockbuster listing of Avenue Supermarts last year.