Avenue Supermarts Ltd, which controls the Western India-based supermarket chain D Mart, is launching its initial public offering on March 8.
The company wants to raise about Rs 1,870 crore by issuing over 6 crore shares as fresh capital to the public.
The offer closes on March 10 and the shares are in a price band of Rs 295 to Rs 299 per share of face value of Rs 10 each. Anchor investor bid/issue period is March 7.
The company proposes to use the net proceeds of the issue for repayment or prepayment of a portion of loans and redemption or earlier redemption of NCDs availed by the company (about Rs 1080 crore) and for construction and purchase of fit outs for new stores (about Rs 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 shareholding.
The company reported a net profit of Rs 320.6 crore in FY16 on a topline of Rs 8,588 crore. The company’s shares in the grey market are reportedly quoting a premium of nearly Rs 200 to the offer price.
Kotak Mahindra Capital is the global co-ordinator and book running lead manager to the issue. Axis Capital, Edelweiss Financial Services, HDFC Bank, ICICI Securities, INGA Capital Private, JM Financial Institutional Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are the book running lead managers to the issue.
The registrar is Link Intime India. The shares of Avenue Supermarts will be listed on the NSE and BSE.
National supermarket chain
The company is an emerging national supermarket chain, with a focus on value-retailing.
According to Technopak Advisors Pvt Ltd, in FY16, the company was one of the largest and the most profitable F&G retailer in India. It offers a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise and Apparel product categories.
Avenue Supermarts had opened its first store in Mumbai in 2002. As of January 31, 2017, the brand has 118 stores with a retail business area of 3.59 million sq.ft located across 45 cities in India.
The company has presence in Maharashtra (59), Gujarat (27), Telangana (13), Karnataka (7), Andhra Pradesh (4), Madhya Pradesh (3), Chhattisgarh (1), NCR (1), Daman (1) and Rajasthan (2).