D-Mart falls 11% in two days on promoter R K Damani upto 1% stake sale plan

Shares of Avenue Supermarts - the operators of retail chain D-Mart, have fallen 6% to Rs 1,338 per share, extending their 5% drop on the BSE on Friday after the company announced that promoter R K Damani would pare his stake to comply with the shareholding norms.

D-Mart lost Rs 93.21 billion market-cap in past two days from Rs 933.10 billion on Thursday, May 17, 2018 to Rs 839.89 billion at 12:26 pm; the BSE data shows.

Damani plans to sell 6.24 million shares (about 1%) between May 21 and June 14 in the open market. Currently, the total promoter holding in Avenue Supermarts is 82.2%, which needs to be brought down to at least 75% by March 2020. Damani in his personal capacity holds 39.41% stake in the company.

Damani has given an undertaking that he would not buy any equity shares when the open market share sale is underway.

Since listing on March 21, 2017, shares of Avenue Supermarts have risen 133% till Thursday. It zoomed as much as 400% from the issue price of Rs 299 offered at the time of its initial share sale. It touched an all-time high of Rs 1,534 on April 30, 2018 in intra-day trade.