Shares of Avenue Supermarts were trading at Rs 598.15 at 10:30 IST on BSE, a premium of 100.05% over the initial public offer price of Rs 299.
The stock debuted at Rs 604.40, a premium of 102.14% to the initial public offer (IPO) price. So far the stock hit a high of Rs 615 and low of Rs 558.75. On BSE, so far 68.20 lakh shares were traded on the counter.
The issue price was fixed at Rs 299 per share, the top end of the IPO price band of Rs 295 to Rs 299 per share. The IPO of Avenue Supermarts closed with strong response from investors. The IPO received bids for 464.08 crore shares compared with 4.43 crore shares on offer. The IPO was subscribed 104.59 times. The issue opened for bidding on 8 March 2017 and closed on 10 March 2017.
The qualified institutional buyers (QIBs) category was subscribed 144.62 times. The non institutional investors category, made up of high net-worth individuals, was subscribed 277.74 times. The retail individual investors (RIIs) category was subscribed 7.51 times.
The issue comprised fresh issue of shares of Rs 1870 crore. The company set a price band of Rs 295 to Rs 299 per share for the IPO. Avenue Supermarts raised Rs 560.99 crore by selling 1.87 crore shares to a total of 35 anchor investors ahead of the opening of the company's IPO. The shares were allotted to the anchor investors at Rs 299 per share, the top end of the IPO price band.
Avenue Supermarts is an emerging national supermarket chain. The company's stores operate under the "D-Mart" brand, registered as a trademark under various classes of products. The company offers a wide range of products with a focus on the Foods, Non- Foods (FMCG) and General Merchandise & Apparel product categories. According to Technopak, in FY 2016, the company was one of the largest and the most profitable F&G retailers in India.
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The company proposes to utilize the IPO proceeds repayment or prepayment of a portion of loans, construction and purchase of fit outs for new stores and for general corporate purposes.
On a consolidated basis, Avenue Supermarts reported net profit of Rs 387.74 crore on net sales of Rs 8784 crore in nine-months ended December 2016.
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