- D-mart was started in 2002 by Radhakishan Damani and is a chain of hypermarket and supermarkets.
- Seasoned stock market investor Radhakishan Damani, who is the promoter of Avenue Supermarts sold 1 percent stake in the company which owns hypermarket chain D-Mart on Friday.
Seasoned stock market investor Radhakishan Damani, who is the promoter of Avenue Supermarts sold 1 percent stake in the company which owns hypermarket chain D-Mart on Friday.
Damani sold little more than 6.23 million Avenue Supermart shares via open market transactions and multiple block deals, the company informed stock exchanges. Although the identity of the buyers is still not revealed.
The bulk of the share went for Rs. 1,404.10 per share.
These shares will fetch Damani about Rs. 874.75 crore (around $123.5 million at current exchange rates) before accounting for transactions costs and statutory levies including the 10 percent long-term capital gains tax is that now applicable.
This transaction was done in order to meet the Securities and Exchange Board of India’s (SEBI) rules which states that promoters and promoter groups can have a maximum of 75 percent stake in the listed entities. The rules may be amended after Finance Minister Nirmala Sitharaman proposed the bring the level of the promoter in the listed company to 65 percent last month.
After the sale of the shares, the promoter and promoter group holding in the Avenue Supermarts will drop to 80.2 percent as compared to 81.20 percent before the transaction at the end of the June. The personal stake of Damani will drop to 37.41 percent.
Last year in May 2018 also Damani sold a 1 percent stake in the company to meet the SEBI guidelines. Then also he took home around Rs. 848.75 crore (around $125 million then). Shares of Avenue Supermarts advanced 1.58% on the BSE to close at Rs 1,452.85 apiece.