DMart OFS: Non-retail quota subscribed 3.4 times
Radhakishan Damani and other promoters of Avenue Supermarts would be selling 2.28 per cent stake or 1.5 crore shares of the company in a Rs 3,500-crore deal.by ETMarkets.com
NEW DELHI: The offer for sale (OFS) by Avenue Supermarts, which opened on Friday, received subscription for 4,53,20,852 shares or 340 per cent against the non-retail offer size of 1,33,20,000 shares.
Retail investors, and non-retail investors who choose to carry forward their bids, will be allowed to bid on Monday. The quota reserved for retail investors is 14,80,000 shares. The company has set the floor price of the issue at Rs 2,049.
At 10.30 pm, the scrip was trading 5.55 per cent lower at Rs 2,401.25.
Radhakishan Damani and other promoters of Avenue Supermarts would be selling 2.28 per cent stake or 1.5 crore shares of the company in a Rs 3,500-crore deal.
The company, which owns supermarket chain DMart, is reducing the stake to meet Sebi’s requirements on the minimum public shareholding requirement.
At the end of this exercise, the promoters’ stake in the company will come down to 75 per cent from 79 per cent.
Earlier this month, Avenue Supermarts sold 2 crore shares at an issue price of Rs 2,049, reducing promoters’ stake to 77.27 per cent. It had been 79.73 per cent as of December 2019.
Avenue Supermarts shares have surged 730 per cent from its IPO price of Rs 299 in March 2017 — making founder Radhakishan Damani the sixth-richest Indian with a net worth of $12 billion after the company’s stock price hit record highs.