On Friday, May 18, 2018, Avenue Supermarts informed the stock exchanges that promoter Radhakishan Shivkishan Damani would pare his stake to comply with the shareholding norms.
Damani proposed to sell 6.24 million shares (about 1%) between May 21 and June 14 in the open market. As of March 2018, the total promoter holding in Avenue Supermarts was 82.2%, which needs to be brought down to at least 75% by March 2020. Damani in his personal capacity holds 39.41% stake in the company.
Damani has given an undertaking that he would not buy any equity shares when the open market share sale is underway.
Since May 18, shares of Avenue Supermarts had underperformed the market by falling 9% as compared to 2.3% decline in the S&P BSE Sensex till Wednesday.