6 days ago
American Growth Fund exits DMart in Rs 2,600-crore block deal
An investment fund sold all of its shares in the company that runs DMart stores.
The sale involved 6.76 million shares worth nearly Rs 2,600 crore.
The shares were sold for Rs 3,750.58 each, which was less than the previous day’s market price.
The buyer’s identity was not announced.
After the sale, Avenue Supermarts’ share price went down.
The company had recently reported that its profit and revenue increased in the June quarter.
However, sales growth at stores open for a longer time slowed.
Brokerages were concerned about this slowdown and competition from quick-commerce companies.
American Funds Insurance Series Global Growth and Income Fund sold its entire 1.04% stake in Avenue Supermarts.
The 6.76 million-share transaction was valued at nearly Rs 2,600 crore, with shares sold at Rs 3,750.58 each.
The buyer was not disclosed, and the sale price represented a 4.1% discount to Tuesday’s close.
Avenue Supermarts shares fell more than 4% intraday and closed 2.28% lower at Rs 3,822 on the BSE.
The deal followed June-quarter results showing higher profit and revenue but slower like-for-like sales growth.
- Who
- American Funds Insurance Series Global Growth and Income Fund sold its entire stake in Avenue Supermarts; the buyer was not disclosed.
- What
- A block deal transferred 6.76 million Avenue Supermarts shares worth nearly Rs 2,600 crore.
- Where
- The shares traded through a block deal, with Avenue Supermarts’ stock performance reported on the BSE.
- When
- The transaction took place on Wednesday, a little over a month after the company reported its June-quarter earnings.
- Why
- The articles do not state why the fund sold; the deal followed results showing slower like-for-like growth and concerns about quick-commerce competition.
Key facts
- Company
- Avenue Supermarts, which operates the DMart chain of stores
- Seller
- American Funds Insurance Series Global Growth and Income Fund
- Stake sold
- Entire 1.04% stake
- Shares traded
- 6.76 million
- Deal value
- Nearly Rs 2,600 crore
- Sale price
- Rs 3,750.58 per share
- Stock reaction
- Shares closed 2.28% lower at Rs 3,822 on the BSE
- June-quarter profit
- Standalone net profit rose 12.8% year on year to Rs 935.8 crore
Sources
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