MUMBAI: The promoters of DMart operator Avenue Supermarts are planning to sell up to 2.28 per cent through an offer for sale (OFS) over the next few days, the company informed the stock markets through a filing on Thursday.
The share sale will bring down the promoters’ stake well within the 75 per cent limit prescribed by SEBI;
The share sale by Rakesh Damani and other promoters is likely to be priced 5 per cent lower than DMart’s closing share price on February 12, which was Rs2481.60 apiece. The promoters are expected to gain Rs3,500 crore through the OFS.
The share sale will help Avenue Supermarts comply with norms set by the Securities and Exchange Board of India (SEBI). Promoters will have to shed roughly 5 per cent of their stake, as per the current market price. Following a QIP a few days back, the promoters’ stake has declined to around 77 per cent.
The market regulator does not permit promoters to own more than 75 per cent of a listed company, and promoters are expected to bring it down to the specified level during the three-year period after the listing.
Avenue Supermarts’ three-year deadline is nearing, since it had listed on the stock exchanges on March 21, 2017. Damani alone has a roughly 37 per cent holding in Avenue Supemarts. His wife Shrikantadevi Radhakishan Damani holds 3.54 per cent stake in the company, whereas his brother Gopikishan Shivkishan Damani owns 8.12 per cent.