Avenue Supermarts share price falls 2% on report promoter to cut stake in firm

Shares of D-Mart operator Avenue Supermarts slipped more than 2% in the early trade today on reports of promoter cutting their stake in the company.

The stock price of Avenue Supermarts opened with a gap-down chart pattern, at Rs 1467, down 22 points against yesterday's close of Rs 1489.75 and slipped further 2.59% to the day's low of Rs 1,451.20 on BSE.

Overall, the stock has lost over 10% price value in a year and over 2.5% half-yearly. Currently, the stock trades higher than 20, 50, 100 and 200-day moving average but lower than 5-day moving average.

A total of 0.34 lakh shares and 2.76 lakh shares changed hands on BSE and NSE, respectively.

The promoter Radhakishan Shivkishan Damani would gradually cut stake by 0.998 % starting August 8, 2019, the company said on August 6. The stake sale by the promoter is to comply with the minimum public shareholding norms.

"Damani proposes to divest up to 0.998 % of the total paid-up equity share capital of the company aggregating to 62.3 lakh shares," the company said in its BSE filing.

At 1255 hours, Avenue Supermarts was quoting at Rs 1,466, down Rs 22 points, or 1.53% on the BSE.