Radhakishan Damani completes sale of 62.3 lakh shares in Avenue Supermarts
Ever since the new budget has come with the changes in the minimum public shareholding norms, companies are putting their shares on sale to comply with the requirements of SEBI regulations.
In the process, Radhakishan Shivkishan Damani sold 40 lakh shares of Avenue Supermarts at Rs 1,404.10 per share, translating it into a Rs 561.64 crore transaction, according to the bulk deals data available on the BSE on August 9.
The D-Mart retail chain operator Avenue Supermarts, said that Founder Radhakishan Shivkishan Damani has completed the sale of 62.3 lakh shares, which is 0.998% stake in the open market to cohere to minimum public shareholding norms.
The stock closed at Rs 1,452.85, up by 1.58% or Rs. 22.55, on the BSE on Friday.
The company in its BSE filing said, “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.”
As per the new rule of minimum public shareholding introduced in the new budget, every company has to have at least 25 percent public shareholding.
As of Q2 i.e, June 2019, promoter and promoter group held 81.20 percent stake in the company, which includes Damani’s 38.41 percent shareholding.
With today’s sale, Damani’s shareholding has reduced to 37.41 percent and the total promoter group shareholding to 80.202 percent.