Avenue Supermarts Ltd.'s promoter Radhakishan Damani will reduce his stake in the company to meet the mandated minimum public shareholding requirement.
Damani will sell up to 1 percent stake or 62.3 lakh shares in the operator of D-Mart supermarket chain, according to an exchange filing. The sale will start from Aug. 8 and go on till Sept. 14.
Avenue Supermarts is 81.2 percent owned by the Damani family. Under the Securities and Exchange Board of India's norms, a listed company needs to maintain a minimum public shareholding of 25 percent. The promoter group has to sell over 6.2 percent stake to bring public holding to that level. After the sale, promoter stake will come down to 80.2 percent.
In May last year, Damani had offloaded up to 1 percent stake, worth more than Rs 800 crore. The sale triggered a sell-off in the stock with the company recording its biggest intraday drop since listing in March 2017.
Avenue Supermarts had a market capitalisation of Rs 93,017 crore, as of Tuesday's close, according to Bloomberg. The stock closed 0.1 percent higher on the BSE, compared with the 0.75 percent rise in the benchmark BSE Sensex.
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