D-Mart IPO: Avenue Supermarts lists at 100 percent premium to issue price

BT Online        Last Updated: March 22, 2017  | 12:33 IST
D-Mart IPO: Avenue Supermarts lists at 100% premium to issue price

Avenue Supermarts, the parent firm of D-Mart which is among the most profitable food and grocery retail chains in India, listed at a 102 percent premium to its issue price on Tuesday.

The stock rose to Rs 615 level, more than 100 percent premium of its issue price of Rs 299 on the BSE.

The company's market capitalisation rose to Rs 36,758 crore on the BSE.

The initial public offer of Avenue Supermarts, the operator of retail chain D-Mart, saw robust investor demand and was subscribed 106 times with strong demand from institutional and retail investors.

ALSO READ: D-Mart IPO: A sneak peek into financials of its competitors

It has been admitted to dealings on BSE in the list of 'B' Group Securities.

The firm has Reliance Retail, Future Retail, Trent Hypermarkets and Avenue Supermarts  as its major competitors in the market.

The company, founded in 2002, offers a wide range of products with focus on foods and non-foods (FMCG), general merchandise and apparels.

D-Mart is a supermarket chain that offers customers a range of home and personal products under one roof.

ALSO READ: D-Mart IPO hits market today: What brokerages have to say

The IPO, the biggest since PNB Housing Finance's Rs 3,000 crore offer in October last year, received bids for 460.22 crore shares against the total issue size of 4.43 crore shares. Avenue Supermarts raised nearly Rs 561 crore by allotting shares to anchor investors.

The price band for the IPO was set at Rs 295-299. Avenue Supermarts plans to raise Rs 1,870 crore through the IPO and the proceeds would be utilised for various purposes, including loan repayment.

Nine merchant bankers-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-are managing the offer.

Analysts and brokerages have been bullish on the prospects of the firm and given a subscribe call to the issue.

ALSO READ: D-Mart parent Avenue Supermarts raises Rs 561 cr from anchor investors

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