Mumbai: Shares of Avenue Supermarts Ltd, the parent of D-Mart, saw a stellar listing on Tuesday as it surged 104% after its initial public offer (IPO) to raise Rs1,870 crore received a subscription of more than 100 times earlier this month.
Avenue Supermarts’ shares opened 102.14% higher on the BSE at Rs 604.40 a piece , compared to the issue price of Rs299 per share,which was the upper end of the price band.
At 12.37pm, the shares were up 108% to trade at Rs620.50, while benchmark 30-share Sensex falls 0.35% to trade at 29,416 points.
Earlier in the day, the shares touched a high of Rs 615 and a low of Rs600, respectively.
The supermarket chain, with a focus on value-retailing, opened its first store in Mumbai in 2002, and had expanded to 118 outlets as of 31 January, 2017.
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For the nine months to December 2016, the company reported a total revenue of Rs8,803 crore. Its net profit grew at a CAGR (compounded annual growth rate) of 40.55% from fiscal 2014 to Rs318.76 crore in fiscal year 2016. For the nine months to December, its net profit was Rs387.47 crore.
The supermarket chain, with a focus on value-retailing, opened its first store in Mumbai in 2002, and had expanded to 118 stores as of 31 January.
The company intends to use the proceeds from the IPO to repay debt of Rs1,080 crore, fund the construction and purchase of fit-outs for new stores to the tune of Rs366.6 crore, and the rest for general corporate purposes.
Kotak Mahindra Capital, Axis Capital, Edelweiss Financial Services, HDFC Bank, ICICI Securities, JM Financial Institutional Securities, Inga Capital, SBI Capital Markets and Motilal Oswal Investment Advisors managed the issue.
