D-Mart promoter's shares open 102% higher than issue price
The firm plans on using the gains from the trade to clear its Rs 1,080-crore debt and invest in infrastructure.
D-Mart’s parent operator Avenue Supermarts Limited’s shares opened 102% higher on the Bombay Stock Exchange at Rs 604.40 against its issue price of Rs 299 per share on Tuesday. It opened for subscription on March 8.
By 2.49pm, the company’s shares were trading at Rs 630.8 per share.
The firm plans on using the remuneration from the IPO to clear its Rs 1,080-crore debt, invest in construction and purchase “fit-outs” for new stores to the tune of Rs 366.6 crore, Mint reported.
The 1,870-crore IPO is the largest since Punjab National Bank Housing Finance’s Rs 3,000-crore public offering in October, 2016, The Economic Times reported.
The supermarket chain, started by Radhakishan Dumani, opened its first store in 2002 in Mumbai’s Powai. It now has branches in 125 locations in Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh and the National Capital Region, a statement on the company website said.
The IPO was conducted by Kotak Mahindra Capital, Axis CapitalBSE, Edelweiss Financial ServicesBSE, HDFC BankBSE and ICICI Securities.