Damani, other DMart promoters likely to offload 2.27% via OFS

Promoters led by Radhakishan Damani are likely to sell 2.27 per cent stake in Avenue Supermarts — the firm that owns supermarket chain DMart — over the next few days through an offer for sale (OFS), said bankers.

The share sale aimed at complying with Sebi’s minimum public shareholding requirement is likely to be priced at a 5 per cent discount to Wednesday’s closing price and will fetch the promoters around Rs 3,500 crore.

Avenue Supermarts shares gained 3.63 per cent to Rs 2,481.6 on Wednesday.

The decision to sell a stake comes on the heels of a share sale to institutional investors over the weekend. Avenue Supermarts sold two crore shares at an issue price of Rs 2,049 a piece to investors, reducing his holding to 77.27 per cent. Promoters held 79.73 per cent stake in the company as on December 31, 2019.

The company listed on March 21, 2017 and as per the Sebi minimum public holding norms, promoters will have to reduced their stake to 75 per cent within three years of listing.

The stock has jumped 35 per cent so far this year and 730 per cent from its IPO price of Rs 299 in March 2017.