FMCG major Spencer’s Retail has acquired a new major investor in the form of DMart owner Radhakishan S Damani, with the latest shareholding data released by the company on Tuesday showing that Damani has picked up 2.09 per cent stake in the firm. The disclosure sent Spencer’s stock prices soaring on the bourses, the scrip ending the day up by almost 20 per cent.
Spencer’s Retail, part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as fast moving consumer goods (FMCG), fashion, food, staples, general merchandise, personal care, home essentials, electrical and electronics to its consumers. Damani, a well known entrepreneur in the segment, owns Avenue Supermarts, the controlling firm operating the DMart chain of stores.
While no official response has come from Damani, analysts say he is likely to have bought the stakes sold by mutual fund investors in the firm. The total holding of mutual funds in the firm went from 6.28 per cent at the end of September quarter to 4.81 per cent as on the end of December.
The documents released by the company on Tuesday shows that Canara Robeco Mutual Fund A/C Canara Robeco Emerging Equities, and Reliance Capital Trustee Company Limited A/C Reliance Growth Fund have sold more than one percentage point stake in the company during the quarter.
Damani had held either nil or less than 1 per cent in Spencer’s as of the end of September 2019. However, he now holds 2.09 per cent. Spencer’s Retail had posted a consolidated net loss of `42 crore in the first half (April-September) of the financial year 2019-20, while it had reported a net profit of `0.67 lakh during the same period last fiscal year.
Spencer’s Retail was formed in October 1, 2017, when the retail business of CESC Ltd — the flagship firm of the RP-Sanjiv Goenka Group — was demerged. The company debuted on the stock exchanges on January 25 last year, but the scrip has performed poorly so far, falling by 73 per cent over 2019. In 2020, however, the company’s stock has surged by 55 per cent.
Rs 42 crore consolidated net loss posted by Spencer’s Retail in H1FY20
Rs 0.67 lakh net profit was reported by the firm during the first half of FY19