At USD 4.4 billion, D-Mart's RK Damani is now wealthier than prominent names such as Adi Godrej, Pawan Munjal, Nusli Wadia, Rahul Bajaj and Ajay Piramal on the Forbes list of the richest in India.
When Forbes released its annual list of billionaires on Monday, it listed Avenue Supermarts founder RK Damani as the 896th richest person in the world and the 47th richest in India.
Had the list been delayed by a day, the reclusive billionaire would have shot up the charts after his company’s spectacular debut on the Bombay Stock Exchange on Tuesday.
Shares of Avenue Supermarts—the company which runs the D-Mart chain of retail stores—closed at Rs 640.75 on listing day, a 114.30 percent premium to its issue price of Rs 299. It was a record opening for an IPO of Avenue's size (Rs 1870 crore) with no other IPO of a similar size coming anywhere close.
The company’s market capitalisation of around Rs 40,000 crore at Tuesday’s closing price was much higher than five Nifty companies.
So what does this mean for Damani’s wealth?
Through direct ownership, his investment arm Bright Star Investments and various trusts, Damani owns around 410 million shares or 66 percent of the company he founded in 2002.
This means his Avenue Supermart’s stellar show saw his networth rise by Rs 26,240 crore or USD 3.9 billion in a matter of one trading session.
Even if you exclude the 90 million shares held in trusts, Damani’s stake in the Avenue Supermarts is still worth Rs 20,480 crore or USD 3.1 billion.
In addition, the value of his holdings in listed companies stands at Rs 3,000 crore, putting his total networth at roughly USD 4.4 billion (USD 3.6 billion if one excludes the Avenue shares held in various trusts).At USD 4.4 billion, Damani is wealthier than prominent names such as Adi Godrej, Pawan Munjal, Nusli Wadia, Rahul Bajaj and Ajay Piramal on the Forbes India rich list.The Great Diwali Discount!
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