DMart operator Avenue Supermarts' promoters may approve OFS worth Rs 3,500cr

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26 Aug, 2025 12:21

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Radhakishan Damani-led Avenue Supermarts, which owns DMart, is likely to launch its offer for sale (OFS) for Rs 3,500 crore, or $500 million, soon.

Moneycontrol was the first to report on February 5 that the company approved the launch of a qualified institutional placement (QIP) to the tune of 20,000,000 shares, which would translate in an issue size of around Rs 4,000 crore at current market prices.

The QIP and OFS plans are in line with the Securities and Exchange Board of India's (SEBI) rule on minimum public shareholding (MPS) for listed companies.

The rule stipulates that promoters cannot own more than 75 percent and that public shareholders should own a minimum of 25 percent. Newly-listed companies are given a three-year window to comply. Since Avenues Supermarts listed on the bourses on March 21, 2017, the deadline ends in March 2020.

Moneycontrol was the first to report on the promoters' stake sale plans on November 13, 2019. The report stated that the promoters would trim their stake by February to meet SEBI's minimum public shareholding norms.

The promoters have to shed 5.21 percent stake to comply with the regulatory norms. At current market price, a 5.21 percent stake would be valued around $1.03 billion, or about Rs 7,350 crore.

Since the QIP was approved for Rs 4,000 crore, an OFS worth Rs 3,500 crore seems to be in the offing. A source told Moneycontrol that the OFS component would follow the QIP 'later if required'.

From the launch of its first store in Powai, Mumbai in 2002, DMart today operates a retail business area of 5.9 million square feet and has 176 stores across 11 states and one Union Territory, according to its 2018 annual report.

In FY 18-19, Avenue Supermarts registered a revenue of Rs 19,916 crore and a profit of Rs 936 crore. The supermarket chain which operates on a low-cost model is present in three segments -- foods, non-foods and general merchandise and apparel -- with half of the revenue coming from the first segment.

It counts Future Retail, Trent, V-Mart Retail, Arvind Fashions and Spencers Retail as its listed peers.