Avenue Supermarts declines as promoter plans to sell stake

The share price of Avenue Supermarts fell about 8 per cent intraday on Friday, its biggest intraday fall since listing, after promoter Radhakrishan Damani announced plans to sell stake in the company.

The sale is to comply with the Securities and Exchange Board of India’s minimum public shareholding norm, the company said in a filing to the exchanges.

The Damani family owns 82.2 per cent stake in the company and as per SEBI norms, a listed company needs to maintain a minimum public shareholding of 25 per cent. Hence, the promoter group will have to sell over 7.2 per cent stake in the company.

Damani will be offloading up to 1 per cent or 62.4 lakh shares, amounting over Rs. 800 crore. The divestment process will be completed between May 21 and June 14, the company added.

On Friday, Avenue Supermarts closed at Rs. 1,417.20 per share, down Rs. 77.80 or 5.20 per cent on NSE. The stock opened at Rs. 1,495 and touched an intraday low of Rs. 1,375.95 per share on NSE. The stock has attracted a trading volume of 31,11,215 shares on NSE.