D-Mart promoter Radhakishan Damani to sell up to 1% stake

New Delhi: Radhakishan Damani, the billionaire investor and promoter of Avenue Supermarts which operates D-Mart stores, will sell up to 1% stake in the company for an estimated sum of over Rs888 crore.

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.

At 3.20pm, Avenue Supermarts shares fell 5.49% to Rs1413 on BSE.

The company, which operates DMart stores, said that Damani has proposed to sell up to 1% of the total paid up equity share capital of the company aggregating to 62,40,844 shares. Based on current share price of Avenue Supermarts at Rs1,424 apiece, sale of 62,40,844 shares will be for an estimated sum of Rs888.69 crore.

Avenue Supermarts said share sale by Damani will be in the period beginning from 21 May to 14 June or the actual date of completion of sale of all equity shares, whichever is earlier.

As per regulatory norms, every listed firm would need to maintain a public shareholding of at least 25%. Listed public sector companies have been provided additional time till 21 August 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 in 2017.