Avenue Supermarts has filed papers with SEBI for its IPO. The IPO will be open for subscription in couple of months:
Issue Details of XXX IPO:
- IPO Open :
- Issue Price band: Rs XX per share
- Issue Size: Rs 1850 crores ( XX Shares)
- Market lot : XX shares
- Minimum Investment: Rs (Upper band)
- Book Running Lead Managers :
- Registrar –
- Listing: BSE/NSE
IPO Issue Allocation
- Qualified institutional buyers (QIBs) – 50% of the total issue size.
- Non-institutional investors (NIIs) – 15% of the issue size.
- The retail quota limit in the issue = 35% of the issue size.
Avenue Supermarts owns and operates hypermarkets and supermarkets retail chain D-Mart. Owned by investor Radhakishan Damani, D-Mart is a pure food and grocery retailer
D-Mart, which launched its first store in 2000, has focused solely on expanding its hypermarket retail chain.
Currently, there are around 110 D-Mart hypermarket stores in 26 cities. On an average, the company has been opening 10-15 stores per annum and hopes to continue or accelerate it depending on the market.
As of August 31, 2016, the company had 4,225 full-time employees and also higher number of employees on contract.
Number of Stores:
|State||No of Stores||Revenue Share|
Promoter & Promoter group holds 91% shares. Top promoters are Radhakishan Damani (43.8%) , Bright Star (15.8%), Gopikishan Damani (13.72%)
Objective of the issue:
- Repayment or prepayment of a portion of loans and redemption or earlier redemption of NCDs availed by our Company – 1080 crores
- Construction and purchase of fit outs for new stores – 367 crores
- General Corporate purposes
Anchor Investors: Will be available one day before the IPO opens
|In Rs Crores|
|Net Profit Growth||51%||32%||71%||54%|
|Equity + Reserves||1521||1200||956||789||684|
|Long term Borrowings||908||714||457||371||264|
|Debt Equity Ratio||0.78||0.75||0.67|
D-Mart’s better financial performance in comparison to its peers has been driven by its differentiated business model, wherein 90% of D-Mart stores are located in properties owned by the firm, unlike most retail firms which are burdened by the high cost of rentals.
Valuation as compared to its peers:
Should you invest:
The performance of the company is better than its listed big peers. Continous growth in Revenue & net Profit growth. Also the promoter is one of the reputed investor.
Investors can consider subscribing for this IPO for medium to long term.
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