Capital Group exits 1% D-Mart stake for US$344.5M
What's the deal? Capital GroupDealroom has a profile for this one. Try Dealroom → on Wednesday sold a 1.04% stake in Avenue SupermartsDealroom has a profile for this one. Try Dealroom →, the parent of Indian retail chain D-MartDealroom has a profile for this one. Try Dealroom →, for US$344.5M in an open market transaction. The US-based firm offloaded 67,64,623 shares at an average of US$50.9 each, according to BSE bulk deal data.
Who's involved? The sale went through Capital Group affiliate American Funds Insurance Series Global Growth and Income FundDealroom has a profile for this one. Try Dealroom →. Buyers of the Mumbai-based retailer's shares could not be ascertained from the exchange.
Market reaction: Avenue Supermarts shares fell 2.28% to close at US$51.9 on the BSE.
The backdrop: Last month, Avenue Supermarts reported an 11.33% rise in consolidated net profit to US$116.8M for the June quarter of FY27, up from US$104.9M a year earlier. Revenue from operations climbed 14.9% to US$2.55B.
The signal: A large foreign investor trimming its position, even as D-Mart posts double-digit profit and revenue growth, points to portfolio rebalancing rather than a verdict on the retailer's fundamentals.
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Image credit: Random Retail
