Avenue Supermarts slips as promoter to trim stake

Avenue Supermarts fell 1.95% to Rs 1460.65 at 10:15 IST on the BSE after Radhakishan Damani announced a stake sale to meet minimum public shareholding norms.

The announcement was made after market hours yesterday, 6 August 2019.

Meanwhile, the S&P BSE Sensex was up by 23.36 points or 0.06% at 37,000.57.

On the BSE, 21000 shares were traded in the counter so far compared with average daily volumes of 31000 shares in the past two weeks. The stock had hit an intraday high of Rs 1479.4 and an intraday low of Rs 1451.2 so far during the day. The stock hit a 52-week high of Rs 1696.15 on 19 December 2018. The stock hit a 52-week low of Rs 1126.95 on 23 October 2018.

The company announced that its promoter, Radhakishan Damani, intends to sell 62.30 lakh equity shares, or 1% stake, to comply with the requirements of minimum public shareholding. Damani will sell his shares between 8 to 14 September 2019.

As on 30 June 2019, Radhakishan Shivkishan Damani held 38.41% stake in Avenue Supermarts. Total promoter holding stood at 81.20% in the company.

Finance minister Nirmala Sitharaman in her maiden Budget speech on 5 July 2019 had urged Sebi to consider increasing the minimum public shareholding in listed firms to 35% from 25%.

In a separate announcement, the company said it issued commercial paper (CP) worth Rs 50 crore on 6 August 2019. CP will mature on 30 September 2019. CRISIL has assigned 'CRISIL A1+' rating on CP.

On consolidated basis, the company's net profit rose 31.9% to Rs 323.09 crore on 27.1% rise in net sales to Rs 5814.56 crore in Q1 June 2019 over Q1 June 2018.

The supermarket chain of DMart stores is owned and operated by Avenue Supermarts. DMart is a one-stop supermarket chain that aims to offer customers a wide range of basic home and personal products under one roof.

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