The shares of Avenue Supermarts Ltd (ASL) crashed 7 per cent today after news broke that its promoter Radhakishan Shivkishan Damani will divest part of his shareholding in the company, which runs retail chain D-Mart. This on a day when the benchmark BSE Sensex was down just 0.86 per cent.
In a regulatory filing, ASL disclosed that Damani intends to sell up to 1 per cent of the total paid up equity share capital of the company aggregating to 6,240,844 shares of face value of Rs 10 each. The letter to BSE added that he was doing this to enable ASL to comply with the requirements of minimum public shareholding. The divestment process will begin on May 21 and conclude on or before June 14.
ASL is currently trading at around Rs 1,416 per share, which means that the value of Damani's 1 per cent stake stands at over Rs 883 crore. The stock broker-turned-entrepreneur and his family own a 82.20 per cent stake in the company, which had gone public last March.
This development comes two weeks after ASL reported decent figures for Q4 FY18. The Mumbai-based company, one of India's largest food & grocery retailers, said its total revenue stood at Rs 3,810 crore in the quarter under review, up by 22.5 per cent year-on-year. It also reported a net profit of Rs 167 crore, up 42 per cent compared to the corresponding period last year, and its EBITDA margin improved from 6.7 per cent to 7.7 per cent in the same period. Also, ASL's total revenue for FY 18 stood at Rs 15,009 crore, as compared to Rs 11,881 crore for FY 17.