The Avenue Supermarts’ offer for sale (OFS) garnered above 3x subscription on Friday. The OFS got bids for 45.3 million shares from institutional investors, as against 13.32 million shares on offer. Most bids came at Rs 2,258, 10 per cent above the base price of Rs 2,049.
The stock fell 5.6 per cent to end at Rs 2,401 in secondary market trade. A further 1.5 million shares meant for retail investors will be auctioned on Monday.
I-bankers said several foreign institutional investors and mutual funds subscribed for shares in the OFS. At Friday’s cut-off price, promoters led by Radhakishan Damani will be able to raise Rs 3,340 crore.
After the OFS, Avenue will become compliant with the 25 per cent public shareholding norms. Promoter holding in the firm stands at 77.27 per cent, which will decline to 74.99 per cent.
The firm plans to use this money to fuel its expansion plans. Avenue is looking to improve efficiency of its supply chain network, including warehousing facilities.