Avenue Supermarts, the operator of D-Mart retail chain August 9 said Founder Radhakishan Shivkishan Damani has completed the sale of 0.998 percent stake in the open market to adhere to minimum public shareholding norms.
The stock closed at Rs 1,452.85, up Rs 22.55, or 1.58 percent on the BSE on Friday.
"Promoter, Radhakishan Shivkishan Damani, has completed sale of 62.3 lakh equity shares of the company (constituting 0.998 percent of the paid-up equity share capital), on August 9, in compliance with the requirements of SEBI regulations in the process of achieving minimum public shareholding," the company said in its BSE filing.
As per the minimum public shareholding rule, every company has to have at least 25 percent public shareholding.
Of the sale, 64 percent could have been offloaded through a single block deal.
As per bulk deals data available on the BSE on August 9, Damani sold 40 lakh shares of Avenue at Rs 1,404.10 per share, translating it into a Rs 561.64 crore transaction.
The stake sale was as per the letter issued on August 6, the company said.
Avenue Supermarts, on August 6, had said Damani had proposed to divest up to 0.998 percent stake between August 8 to September 14 or the actual date of completion of the sale of all equity shares
As of June 2019, promoter and promoter group held 81.20 percent stake in the company, including Radhakishan Shivkishan Damani who directly owned 38.41 percent shareholding.With today's sale, Damani's stake has reduced to 37.41 percent and the total promoter group stake to 80.202 percent.