Ten minutes into the Initial Public Offer (IPO) of Avenue Supermarkets on Wednesday and 5,94,300 bids had been made.
Avenue Supermarkets, which owns the D-Mart supermarket chain, on Tuesday raised Rs.561 crore by allotting 1.876 crore shares at the price of Rs.299 per piece to 35 anchor investors. These investors include JP Morgan, Fidelity, the Singapore government, TRowe Price and Mutual Funds arms of HDFC, Reliance, ICICI and SBI. The details of the IPO were revealed in a filing to the BSE.
Of the issue size worth Rs.1,870 crore, 35% is reserved for retail investors and 15% for non-institutional investors. Shares are being sold at the rate of Rs.295 to Rs.299 per piece. The minimum bid needs to be 50 shares, and multiples of 50 after that.
The public can buy up to 6.23 crore shares at a face value of Rs.10 per share. Avenue Supermarkets stock will be listed on BSE and NSE. The IPO will close on March 10.
The company plans to clear its debts, among other things, through this IPO.
Many broking agencies have recommended buying the shares of Avenue Supermarkets because of its consistent good performance. The food and grocery chain D-Mart recorded a profit of Rs.300.21 crore in the financial year 2015-2016 with a revenue of around Rs.8,600 crore. The company has been getting over 100% profit every two to three years since FY2011-12. As on September 15, 2016, it has 112 stores, 21 distribution centres and 6 packing centres.