Avenue Supermarts falls 8% as Radhakishan Damani plan to sale upto 1% stake

The stock dipped 8% to Rs 1,379 after the company said the promoter Radhakishan Damani propose to sell upto 1% stake in the company in the open market for achieving minimum public shareholding

Avenue Supermarts, which operates the chain of D-Mart stores, dipped 8% to Rs 1,379 on the BSE in noon deal after the company said the promoter Radhakishan Shivkishan Damani propose to sell upto 1% stake in the company in the open market for achieving minimum public shareholding.

“Mr.Radhakishan Shivkishan Damani, one of our promoters has conveyed to us his intention to sell the equity shares of face value of Rs 10 each of the Company to enable us to comply with the requirements of minimum public shareholding,” Avenue Supermarts said in a BSE filing.

Radhakishan Shivkishan Damani proposes to divest up to 1% of the total paid up equity share capital of the company aggregating to 6.24 million shares, it added.

Radhakishan Shivkishan Damani will sell these share periods beginning from May 21, 2018 to June 14, or the actual date of completion of sale of 6.24 million equity shares, whichever is earlier, the company said.

”l, Radhakishan Shivkishan Damani, or any persons belonging to the promoter and promoter group, shall not buy any equity shares in the open market on the dates on which the equity shares of Avenue Supermarts Limited are being sold by me as specified in the notice to the exchanges for the purpose of achieving minimum public shareholding requirement” Radhakishan Shivkishan Damani said in an undertaking.

As of March 2018, total promoters holding in Avenue Supermarts stood at 82.2%. Radhakishan Shivkishan Damani held 39.41% stake, the shareholding pattern data shows.

At 01:23 pm; the stock was trading 6% lower at Rs 1,405 on the BSE, as compared to 0.71% decline in the S&P BSE Sensex. A combined 1.73 million shares changed hands on the counter on the BSE and NSE.

Since listing on March 21, 2017, shares of Radhakishan Damani-led Avenue Supermarts have risen 133% till Thursday. It zoomed as much as 400% from the issue price of Rs 299 offered at the time of its initial share sale. It touched an all-time high of Rs 1,534 on April 30, 2018 in intra-day trade.