D-Mart promoter to sell 1% stake to comply with Sebi norms, Stock down 6%
The entire divestment process will be completed between May 21, 2018 to June 14, 2018.
Mr. Radhakishan Shivkishan Damani, one of the promoters of Avenue Supermarts (D-Mart), has conveyed to the company his intention to sell the equity shares of the company to enable it to comply with the requirements of minimum public shareholding.
D-Mart has informed the exchange that the promoter intends to sell up to 1% of the total paid up equity share capital of the company aggregating to 6,240,844 shares. The entire divestment process will be completed between May 21, 2018 to June 14, 2018. However, this does not change the fundamentals of the company.
D-Mart recently declared its Q4FY18 results. Its standalone revenue grew by 22.5% yoy to Rs3,810cr, EBITDA came in at Rs294cr, up 41.8% yoy. Company’s adjusted Net profit stood at Rs167.1cr vs. Rs96.7cr yoy. Revenue, EBITDA and PAT came below expectations of Rs3,954cr, Rs332cr and Rs194cr respectively.
D-Mart is a value retailer, focused on food and FMCG categories with 155 D-Mart stores across more than 50 cities (primarily in Maharashtra, Gujarat, Andhra Pradesh & Telangana). As on March 31, 2018, the promoters holding in the company stood at 82.2%, while Institutions and Non-Institutions held 7.26 % and 10.54 % respectively.
Avenue Supermarts Ltd is currently trading at Rs1,398 down by Rs97.15 or 6.5% from its previous closing of Rs1,495.15 on the BSE. The stock is currently trading below its 50 DMA.