Avenue Supermarts’ ₹1,870-cr IPO to open on March 8

Our Bureau Mumbai | Updated on January 13, 2018

Avenue Supermarts, which controls Western India-based supermarket chain D Mart, is launching its initial public offering on March 8. The offer closes on March 10. The company is looking to raise about ₹1,870 crore by issuing over six crore new shares as fresh capital to the public. The price band for the ₹10 face value share is fixed at ₹295-299 each. The anchor investor bid/issue day is March 7.

The company proposes to use the net proceeds of the issue towards repayment or prepayment of a portion of loans, redemption/ early redemption of NCDs (about ₹1,080 crore) and construction and purchase of fit-outs (about ₹366 crore).

The minimum bid lot is 50 shares and thereafter in multiples of 50.

The company was set up by serial investor Radhakishan S Damani, who is known to have mentored ace stock market investor Rakesh Jhunjhunwala. Damani and the promoter family hold 91.34 per cent of the company’s shares. The company reported net profit of ₹320.6 crore in FY16 on a topline of ₹8,588 crore. Its shares in the grey market are reportedly quoting at a premium of nearly ₹200 to the offer price.

Kotak Mahindra Capital is the global co-ordinator and book-running lead manager to the issue. The shares of Avenue Supermarts will be listed on the NSE and the BSE.

Published on March 01, 2017

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