Mart promoter makes spectacular debut, lists at 102% premium over issue price

21 March, 2017, 13:53 | Author: Leticia Walters
  • Grey market punters leveraged HNIs nervously eye D Mart listing

Price band for the issue was fixed at upper band of Rs 299 per share. According to the reports, the serving for the Qualified Institutional Buyers was oversubscribed 144.6 times while it was 277.74 times for the Non-Institutional Investors.

At Rs 604.40 per share, the listing price is 102.14% or Rs 305.40 higher than its issue price of Rs 299 per share.

Avenue Supermarts, the operator of retail chain D-Mart, made a mind-boggling debut on the bourses on Monday, much on the lines of the phenomenal response the company's public issue received a week back from across the investor category.

Incorporated in 2002, Mumbai-based Avenue Supermarts is amongst the largest and the most profitable food and grocery retailer in India.

D-Mart has a strong presence in Maharashtra and Gujarat, and also operates stores in Telangana, Karnataka, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, NCR, Daman, and Rajasthan.

A Compound Annual Growth Rate of 12% is probably over the financial year 2016-2020.

Analysts like Kaustubh Pawaskar from Sharekhan was not surprised about the listing of D-Mart shares. In terms of financial performance, D-Mart stands out among its peers. The retail chain has developed steadily in the last five years in terms of finance. Its net profit has grown from Rs. 161 crore in FY2014 to Rs. 319 crore in FY2016 while its sales has grown from Rs. 4,686 crore to Rs. 8,588 crore during the same period. The other Book Running Lead Managers to the issue were Axis Capital Limited, Edelweiss Financial Services Limited, HDFC Bank Limited, ICICI Securities Limited, Inga Capital Private Limited, JM Financial Institutional Securities Limited, Motilal Oswal Investment Advisors Private Limited and SBI Capital Markets Limited.

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