New Delhi: Shares of Avenue Supermarts which operates D-Mart stores owned by Radhakishan Damani fell over 5 percent on Friday, a day after he announced that he will sell up to 1 percent stake in the company for an estimated sum of over Rs 888 crore.
At 3.10 pm shares of Avenue Supermarts were down 5.42 percent to Rs 1,414.15 a piece on BSE.
Chart courtesy: BSE India
Damani will sell shares to comply with minimum public shareholding requirements.
"Radhakishan Shivkishan Damani, one of our promoters, has conveyed to us his intention to sell the equity shares...Of the company to enable us to comply with the requirements of minimum public shareholding," Avenue Supermarts said in a BSE filing.
The company said Damani has proposed to sell up to 1 per cent of the total paid up equity share capital of the company aggregating to 62,40,844 shares.
Avenue Supermarts said share sale by Damani will be in the period beginning from May 21 to June 14 or the actual date of completion of sale of all equity shares, whichever is earlier.
As per Sebi norms, every listed firm would need to maintain a public shareholding of at least 25 per cent. Listed public sector companies have been provided additional time till 21 August, 2018, to comply with the requirements.
The low-profile investor Damani made his way into the billionaire list and among the top 20 richest Indians, with a blockbuster listing of Avenue Supermarts last year.
With PTI Inputs