Promoters of Avenue Supermarts, owner of retail chain DMart, will sell 2.28 per cent stake (1.48 crore shares) through the offer for sale (OFS) route. The two-day offer for sale (OFS), which started today for non-retail investors will see participation of retail investors and un-allotted non-retail investors on February 17. The base price for OFS has been set at Rs 2,049, a discount of 19.4 per cent to the current market price. No discount is being offered to retail investors.
Share price of Avenue Supermarts closed at Rs 2,542.3, up 2.5 per cent, on Thursday. At the base price, the promoters of the company will be able to mop up over Rs 3,000 crore.
Promoters Radhakishan S. Damani, Gopikishan S. Damani, Shrikantadevi R. Damani and Kirandevi G. Damani are participating in the OFS. While Radhakishan S. Damani will sell up to 1.13 crore equity shares, Gopikishan S. Damani will offer up to 15 lakh equity shares in the OFS.
Shrikantadevi Namani and Kirandevi Damani will sell up to 10 lakh equity shares each in the share sale.
Kotak Securities, Axis Capital, DSP Merrill Lynch, HSBC Securities and Capital Markets (India), IDFC Securities, JM Financial Institutional Securities Limited and JP Morgan India Private are the brokers to the sale. After the OFS, Avenue Supermarts will be able to comply with 25 per cent public shareholding norms issued by Sebi.
The deadline to increase the public shareholding to 25 per cent for the company will end in March.
The OFS is an extension of the recently held QIP issue through which the firm sold over 5% of portion to Lone Cypress, government of Singapore, Europacific growth fund and ICICI Prudential Bluechip Fund. It raised Rs 4,098 crore via QIP from participants such as government of Singapore and ICICI Prudential Bluechip Fund among others.
After the QIP, promoter stake in firm got diluted to 77.27% from nearly 80%. The QIP issue of Avenue Supermarts opened on February 5, 2020 and closed on February 10.
By Aseem Thapliyal