INSUBCONTINENT EXCLUSIVE:
By Baiju Kalesh and P R SanjaiBank of America Corp
and Kotak Mahindra Capital Co
are among banks Indian billionaire Radhakishan Damani picked for another planned stake sale in Avenue Supermarts Ltd., owner of the DMart
brand, said people with knowledge of the matter.
Damani selected the banks as he prepares to pare his stake in India’s largest listed
retail chain by selling about 5.2% next year, the people said, asking not to be identified as the discussions are private
Damani, who sold about 1% earlier this year, has to sell more shares before the end of March to meet a minimum requirement for public float,
one of the people said.
A 5.2% stake in Avenue Supermarts would be valued at around 58.7 billion rupees ($823 million), based on the closing
price in Mumbai on Friday
The founders hold about 80.2% of Avenue Supermarts, including about 37.4% by Damani, according to exchange data
The public shareholding is below the minimum 25% threshold.
The share sale could come at a time when companies in India are battling weaker
consumer demand as Asia’s third-largest economy slows
Avenue Supermarts, which operates food and grocery retail stores under the DMart brand, is among the few players that could sail against the
Its shares have gained about 12% this year.
A final decision hasn’t yet been taken on the size of the sale and more banks could be added,
Representatives for Bank of America and Avenue Supermarts declined to comment, while Kotak couldn’t immediately comment.
