Avenue Supermarts shares drop over 5 pc as Radhakishan Damani to sell up to 1 pc stake

Shares of Avenue Supermarts plunged over 5 per cent today as Radhakishan Damani, the promoter of the company, will sell up to 1 per cent stake in the firm.

Despite opening the day on a positive note, the stock dropped 5.24 per cent to end at Rs 1,416.85 on BSE. During the day, it plunged 7.76 per cent to Rs 1,379.

On NSE, shares of the company tanked 5.20 per cent to close at Rs 1,417.20.

On the equity volume front, 2.70 lakh shares of the company were traded on the BSE and over 31 lakh shares changed hands on the NSE during the day.

Radhakishan Damani, the billionaire investor and promoter of Avenue Supermarts which operates D-Mart stores, will sell up to 1 per cent stake in the company for an estimated sum of over Rs 884 crore.

Damani will sell shares to comply with minimum public shareholding requirements.

"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 today.

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.