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.
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 current share price of Avenue Supermarts at Rs 1,424 apiece, sale of 62,40,844 shares will be for an estimated sum of Rs 888.69 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.
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.
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