Shares of Avenue Supermarts, which operates the supermarket chain D-Mart, on Tuesday made a spectacular debut on the bourses on Tuesday. Its shares got listed at Rs 604.40, a 102.14 per cent premium over its issue price of Rs 299 apiece on the BSE. Then, the stock hit a high of Rs 615 and a low of Rs 558.75 and is currently hovering around Rs 597.90.

But some analysts and brokers are cautious about the stock.

Over 4.88 crore shares changed hands on the NSE while 80.8 lakh shares were traded on the BSE.

Brokers and analysts are sceptical about the sustainability of today's gains. "This kind of buzz is not necessary. The hype is created by some beneficiaries. There are a lot of stocks available at a good discount. Wait for a few months. DMart shares will be available at probably a much cheaper rate,” said a broker on condition of anonymity.

Promoted by stock market veteran Radhakishan Damani, Avenue Supermarts raked in Rs 1,870-crore through the initial public offering that was open for public subscription between March 8 and 10.

The issue was subscribed a whopping 104 times. It raised Rs 561 crore through allotment of shares to anchor investors as part of the anchor book allocation.

General Atlantic and Singapore’s sovereign wealth fund GIC Pte Ltd were among the anchor investors that include PremjiInvest, the investment arm of Wipro Ltd chairman Azim Premji, as well as Norway’s Government Pension Fund Global, venture capital firm Volrado Venture Partners and besides domestic mutual funds.

Though the business model is decent, the over-the-top hype is unwarranted, said a Chennai-based analyst.

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