Shares of Avenue Supermarts, the parent company of supermarket chain D-Mart, slipped over 5 per cent on Friday after the company announced its promoters will offload 2.28 per cent stake (14.8 million shares) through the offer for sale (OFS) route on Friday.
The base price for the share sale has been set at Rs 2,049, a discount of 19.4 per cent to the current market price. At the base price, the promoters of the company will be able to mop up over Rs 3,000 crore. Among the selling promoters are Radhakishan Damani, Gopikishan Damani, Shrikantadevi Damani, and Kirandevi Damani.
The stock, however, pared some of its morning losses to trade over 2 per cent lower at Rs 2,483 apiece on the BSE at 09:43 am. In comparison, the S&P BSE Sensex was trading around half a per cent higher at 41,636 levels.
Following this share sale, the company will become compliant with the 25 per cent public shareholding norms. The deadline to increase the public float to 25 per cent for the company expires next month. READ MORE
Until recently, the promoter stake in the company was nearly 80 per cent. The stake got diluted to 77.27 per cent after the company issued fresh shares to raise Rs 4,000 crore via the qualified institutional placement (QIP) route.
As per its regulatory filing, the share sale shall take place over two trading days. Non-Retail Investors shall be allowed to place their bids on T Day, i.e. February 14 while Retail investors are allowed allowed to place their bids only on T+ I Day. Furlher, those un-allotted non-Retail investors who have placed their bids on T Day and have chosen to carry forward their bids to T+ I Day, shall be allowed to revise their bids on T+I Day. CLICK TO READ PRESS RELEASE
"T" refers to the Transaction date.
On a year-to-date (YTD) basis, shares of the company have outperformed the market by surging 73.6 per cent against over 13 per cent increase in the Nifty50 index.