Mumbai: Shares of Avenue Supermarts, the parent company of supermarket chain D-Mart, slipped by 6.44 per cent on Friday after the company announced its promoters will offload 2.28 per cent stake (1.48 crore shares) through the offer for sale (OFS) route. Those investors who missed the Initial Public Offering (IPO) bus have the opportunity to own the shares now, albeit at a discount to the market price.
The move from the company to bring OFS is in line with the capital market regulator Sebi’s diktat to all the listed companies to bring public shareholding to minimum threshold of 25 per cent.
The base price for the share sale has been set at Rs 2,049, a discount of 19.4 per cent to the current market price. At the base price, the promoters of the company will be able to mop up over Rs 3,000 crore. Selling promoters include Radhakishan Damani, Gopikishan Damani, Shrikantadevi Damani, and Kirandevi Damani.
Following this share sale, the company will become compliant with the 25 per cent public shareholding norms. The deadline to increase the public float to 25 per cent for the company expires next month.
The promoter stake in the company till recently was nearly 80 per cent. The stake got diluted to 77.27 per cent after the company issued fresh shares to raise Rs 4,000 crore via the qualified institutional placement route.
As per its regulatory filing, the share sale shall take place over two trading days. Non-Retail Investors shall be allowed to place their bids on T Day, i.e. February 14 while retail investors are allowed to place their bids only on T+ I Day. Further, those unallotted non-retail investors who have placed their bids on T Day and have chosen to carry forward their bids to T+ I Day, shall be allowed to revise their bids on T+I Day. "T" refers to the Transaction date.
On a year-to-date basis, shares of the company have outperformed the market by surging 73.6 per cent against over 13 per cent increase in the Nifty50 index.