Veteran investor Radhakrishan Damani-backed Avenue Supermarts, owner and operator of D-Mart chain, on Wednesday said that the board approved the issue of up to 2 crore equity shares for the launch of qualified institutional placement (QIP). Following the QIP, the promoters' stake is expected to get down to 75 per cent in adherence to SEBI rule of achieving minimum public shareholding by March 20, 2020. The promoters currently hold just over 79 per cent stake in the company. The QIP's floor price was fixed at Rs 1999.04 per share. The size of the QIP, at current market price, stands at just over Rs 4,o00 crore. Avenue Supermarts shares settled at Rs 2,246.20, up 90.90 points, or 4.22 per cent on NSE.
"The board passed the resolutions for the following: Authorising the opening of the Issue today, i.e. February 5, 2020 b. Approving the issue of up to 20,000,000 equity shares of face value Rs. 10 each; c. Approving and adopting the preliminary placement document dated February 5, 2020, in connection with the Issue; and d. Approving the floor price for the Issue", Avenue Supermarts said in an exchange filing.
The stock outperformed the Sensex by rising 12 per cent from its recent low after the company reported just over 53 per cent on-year surge in profit at Rs 394 crore in Q3FY20. Meanwhile, the equities notched up their third straight gains on Wednesday as investors felt the need to neutralise budget overreaction and move positively as improved business sentiment and positive global cues augur well. At the closing bell, the BSE gauge Sensex was 0.87 per cent or 353.28 points higher at 41,142.66. The index has gained over 1,407 points or 3.54 per cent over the last three sessions. While, the NSE Nifty rose 109.50 points, or 0.91 per cent, to settle at 12,089.15 — taking the three-day gains to 427.30 points or 3.66 per cent.