Avenue Supermart (D-Mart)

Avenue Supermart (D-Mart) is a Mumbai based associate emerged in national supermarket

store chain, which emphasise on value-retailing. In financial year of 2016 the corporate was
one among the biggest and therefore enjoyed the name of most profitable F&G retailer in
India. Avenue Supermart offers a large scale of product items which deals on the Foods,
Non-Foods (FMCG) and General Merchandise & cloth dealing product.On September 15th of
the year 2016, Avenue Supermart t operated on 112 stores with Retail Business space of 3.40
million sq.ft , set up across 41 cities in Maharashtra ,Gujarat, Telangana, Karnataka ,Andhra
Pradesh ,Madhya Pradesh ,Chhattisgarh ,and NCR. The company plans to enroot its store
network in southern and western parts of India and slowly expand the network in other parts
of India consistent to its cluster-focused enlargement strategy.Avenue Supermart operates
and manages all its stores that run and work under the D-Mart brand. The corporate operates
mainly upon the associate possession model (including long lease arrangements, where the
lease time if extended above 30 years then the building will be owned by Avenue Supermart
instead of on a rental model. The corporate opens new stores by installing a cluster approach
on the basis of adjacencies and concentrating on specializing effectiveness in a supply chain,
targeting densely-populated residential areas with a majority of lower-middle, middle and
aspiring upper-middle category of customers.

Avenue Supermart IPO details

Subscription Dates 8 March 2017 – 10 March 2017

Price Band Rs295 – 299 per share

Fresh issue Rs1,870 crore

Offer For Sale Nil

Total IPO size Rs1,870 crore

Minimum bid (lot size) 50 shares

Face Value Rs10 per share

Retail Allocation 35%

Listing On NSE, BSE

On 1st March 2017 D-Mart owner Avenue Supermarts restricted that runs the retail
supermarket D-Mart, planned to move public and lift around Rs.1,870 crore through its IPO
of roughly 6crore equity shares with face worth of Rs 10 each via book building route.
Avenue Supermarts IPO that has caused flutters within the Gray Market opened on 8th March
2017. The corporate mentioned its objective was to utilize proceeds from the issue for
compensation or defrayment of loans and redemption or earlier redemption of NCDs availed
by the corporate, construction and buy of fit outs for brand new stores. The proceeds will also
be used for general company functions. The bid continue for three days with a price band of
Rs 295 – Rs 299, with 50% shares reserved for qualified institutional buyers. Kotak Mahindra
Capital, Axis Capital Ltd, Edelweiss Financial Services Ltd, HDFC Bank Ltd, ICICI
Securities Ltd, Inga Capital Pvt Ltd, JM Financial Institutional Securities Ltd, Motilal Oswal
Investment Advisors Pvt Ltd and SBI Capital Markets Ltd. Link Intime India Pvt Ltd were
the book running lead managers or the registrar to the issue shares.The shares projected was
to be listed on BSE and also on NSE. It was an great time for the businesses to induce listed
on indices. D-Mart came up with 1870 crore of fresh issue with a worth band of Rs 295-299
per share. The IPO was sold 104.5 times oversubscribed on the last day of bidding with the
overall bids received amounting 463 crore as against 4.43 crore shares issued for bidding.
The shares issued for qualified institutional patrons were by 144 times oversubscribed which
is of non- institutional investors 277 times. Retail investors category shares were
oversubscribed by 7 times. Also, on the day of listing the stock opened at 600, over double
the issued price of Rs 299. It listed at 743 that is 148% above the issued price. The shares
doubled on day-1, throughout the pre-open decision auction, a 45 minute window before
actual trade to permit worth discovery of the share. Throughout the particular trading on day-
1 to curb volatility, stocks are allowed to go between the worth band of +/-10% solely, that
during this case was 725 to 483 on equilibrium worth of 602.Avenue Supermarts (D-Mart)
has been one in all the most effective IPOs in its decade that gave around 500% of return
from its IPO in just 15 months. Promoted by Radhakishan Damani, Avenue Supermarts runs
D-Mart retail chain that already achieved 1lakh crore capitalisations within the market. The
IPO was around 1870 crore rupees whereas it was a history for the investors and also the
promoters. Even when the blockbuster IPO, D-Mart share continued to soar intense. In
September-17, the shares hit the Rs 999 mark, inflicting a buzz within the markets. The stock
has over tripled investor’s wealth in just over 5 months as compared with the issued worth of
Rs 299. The stock conjointly touched a height of 1623 rupees on 13th June 2018 on NSE. The
market price increased to 1lakh Crore rupees. It had been an outstanding day for the investors
once D-Mart got listed at Rs.603 against IPO worth of Rs.299. It had been doubled on the day
of listing. The corporate was praised by the analysts at that point and it had been prosperous
as a business model for the corporate. The expansion was good and investors taken it as an
investment probability and gave their best. The listing gain was smart for the short term
investors however it had been great for the long run investors who stayed endowed in.