Shares of Avenue Supermarts, the operator of DMart supermarket chain, rallied 4.95 percent and hit a 52-week high of Rs 2,360.75 on Thursday after the company launched a qualified institutional placement (QIP) to raise up to Rs 4,000 crore.

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The stock has surged by 25 percent in the last one month. At 10 am, the scrip was trading 3.85 percent higher at Rs 2,335.80 on the BSE.

In a regulatory filing on Wednesday, the company said that it will sell 2 crore shares at a floor price of Rs 1,999.04 apiece through a QIP, and may consider offering a discount of 5 percent.

The promoters of the company hold 79.73 percent stake in the company. According to the regulator Securities & Exchange Board of India’s (SEBI) minimum public shareholding norms for listed companies, promoters cannot own more than 75 percent stake in the company and public shareholders should own a minimum 25 percent.

In May 2019, the company’s board had approved the issuance of 2.5 crore shares through QIP. This would reduce the promoter’s stake to 75 percent in order to comply with the regulatory norms.

The Radhakishan Damani-owned Avenues Supermarts was listed on the bourses on March 21, 2017. The newly-listed companies are given a three-year window to adhere with the SEBI rule on minimum public shareholding.

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