D Mart shares double on day of debut

Posted March 21, 2017

Price band for the issue was fixed at upper band of Rs 299 per share.

The reserved portion of qualified institutional buyers (QIB) was oversubscribed 145 times, while the portion set aside for non-institutional investors (NII) was oversubscribed 278 times and that of retail investors 7 times. Avenue Supermarts, operator of one of the most popular supermarket chain, D-Mart, made a debut on the NSE at startling premium of 103% over its issue price.

D-Mart's shares began trading on the BSE at Rs 604.40 apiece, compared with the initial public offering price of Rs 299, stock-exchange data showed.

Avenue Supermarts is an emerging national supermarket chain.

The total value of bids placed by institutions for shares in the initial public offer of D-Mart's parent exceeded their equity investments in all of 2016. There are both food and other products available. The share of organised players is expected to improve from 9 per cent to almost 12 per cent by fiscal year 2020.

Analysts say the retail sector is expected to grow at a CAGR of 12 per cent over FY2016-20, within which the organised segment is expected to grow at a faster pace than the unorganized segment. "There has been a consistent improvement in its financial performance over the past five years".

The supermarket operates 118 stores across 45 cities under the D-Mart brand. Avenue Supermarts has successfully maintained their strategy of profit which has proved beneficial for them.

The company is now valued at Rs 37,719 crore ($5.75 billion). Their sales have boosted from Rs. 4,686 crore to a massive Rs. 8,588 crore in the same period.