DMart Sees Singapore Government, ICICI Prudential MF As Top Investors In Rs 4,100-Crore QIP Issue
The fundraising may have led to an equity dilution of 3.09 percent, according to BloombergQuint’s calculations.
Avenue Supermarts Ltd. allotted four institutional investors more than 5 percent each from new shares issued by the operator of D-Mart supermarket chain as billionaire Radhakishan Damani continues to pare stake to bring his holding within the regulatory cap.
The four large investors—ICICI Prudential Bluechip Mutual Fund, the Government of Singapore, Lone Cypress Ltd. and EuroPacific Growth Fund—are among the eligible qualified institutional buyers who were in all allotted 2 crore equity shares with a face value of Rs 10 each at the issue price of Rs 2,049 apiece, according to an exchange filing. That aggregated to Rs 4,098 crore.
Shares of Avenue Supermarts dropped as much as 3 percent to Rs 2,411 apiece as of 12:30 p.m. That compares with a 0.9 percent gain in the benchmark Nifty 50 Index. The stock had closed 8.6 percent higher on Monday, taking its market capitalisation above consumer goods maker Nestle India Ltd.
Avenue Supermarts’ qualified institutional placement commenced on Feb. 5 and closed on Feb. 10. The company offered 2 crore shares at a floor price of Rs 1,999.04 each. The fundraising, according to BloombergQuint’s calculations, may have led to an equity dilution of 3.09 percent.
Damani has been selling his stake in Avenue Supermarts to comply with the Securities and Exchange Board of India’s requirement of lowering promoter holding to 75 percent. That has been a major overhang for the company’s stock.
During the quarter ended December, the billionaire investor had pared stake in the supermarket chain operator by 48 basis points. As of December 2019, promoters held 79.73 percent in the company. Stakes held by domestic mutual funds and foreign institutional investors stood at nearly 4.17 percent and 6.21 percent, respectively.