Radhakishan Damani sheds around $125 million stake in D-Mart
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Radhakishan Damani sheds around $125 million stake in D-Mart

D-Mart-next-big-brand
Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: August-12-2019 10:34 AM
  • 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.

D-mart- Next Big Brand

Store of D-Mart
Source- business-standard

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.

D-Mart went public in march 2017 through a mega initial public offering (IPO). The company’s share sale was subscribed 105 times in what was one of the most successful IPOs in recent time.
The IPO had a fresh issue of shares worth Rs. 1,870 crore. Avenue Supermarts used 20 percent of the net proceeds to repay debt and a part of it to open new stores.
Shares of Avenue Supermarts more than doubled on listing day, making it the best stock market debut in almost a decade.

D-Mart History

D-mart was started in 2002 by Radhakishan Damani and is a chain of hypermarket and supermarkets. From the launch of its first store in Powai in 2002, D-Mart today has a well-established presence in 176 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan.
The supermarket chain of D-Mart stores is owned and operated by Avenue Supermarts Ltd. (ASL). The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc are brands owned by ASL.

About the author

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career.
Highly enthusiastic about brands and startups, he aims to be a travel content creator.

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