Riding on the ongoing stock rally of Avenue Supermarts, founder Radhakishan Damani has become the second most richest in India, behind Reliance Industries's Mukesh Ambani ($57.4 billion). According to Forbes' Real-Time Billionaires Index, the total net worth of Damani is at $17.8 billion, as on Saturday.
Damani's net worth surged thanks to nearly 16 per cent jump in Avenue Supermart’s DMart shares over the past 10 days. The shares peaked to Rs 2,559 apiece on Thursday, before closing at Rs 2,408 on Friday.
With the new milestone, Damani has pipped past the likes of HCL's Shiv Nadar ($16.5 billion), Uday Kotak ($14.9 billion) and Gautam Adani ($14.1 billion) in the Forbes Billionaire Index.
The shares of Avenue Supermarkets saw a surge after the company announced a share sale for institutional investors on February 5. The company planned to raise up to Rs 4,000 crore at Rs 2,049 apiece. Apart from Radhakishan, other promoters, including Gopikishan S. Damani, Shrikantadevi R. Damani and Kirandevi G. Damani will offload a total of 1.48 crore shares through the share sale, the company said in a BSE filing.
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The company listed on March 21, 2017 at a market capitalisation of Rs 39,988 crore. Last week, DMart had entered the list of top 20 most valued companies by market capitalisation on BSE, replacing Wipro.
On Thursday, the promoters announced that they would be selling 2.28 per cent stake (1.48 crore shares) through the offer for sale (OFS) route. The base price for OFS has been set at Rs 2,049, a discount of 19.4 per cent to the current market price.
Avenue Supermarts is the most profitable grocery retailer in India and has 196 stores across the country. Damani got into retailing in 2002 with one store in suburban Mumbai and has been unstoppable since. He was also a mentor to billionaire investor Rakesh Jhunjhunwala.
