There is a latest news on the IPO front that Avenue Supermarts (D-Mart) is going to launch there IPO. The Avenue Supermarts IPO date as declared: IPO will open on 8th of March 2017. The subscriptions will be open for investors from 22nd – 27th February, 2017. The face value of the shares is going to be Rs. 10 and the issue price band can be between Rs. 290-299.
This D-Mart IPO is one of the most awaited IPOs among the investors. The IPO will be launched in the name of Avenue Supermarts Ltd. The owner and promoter of this company is well known investor Shri Radha Kishan Damani. The company likes to gather Rs. 1800 crores through this IPO.
The company will utilize the raised funds in 2 different ways:
1) The funds will be utilized for payment of debts and NCDs.
2) The company will also invest the funds for opening up of new stores in various places.
It is guessed that the market lot will be of 50 shares each and a total number of 6 crores shares will be issued. This IPO is most awaited among investors because this company is a super market chain and is highly profitable company. In the last 4 years when most of the super-market chains were under topline and bottomline pressure, D-Mart has outperformed their peers in the same time period.
The promoter of the company Mr. Radha Kishan Damani is called as the guru of Mr. Rakesh Jhunjhunwala, the famous investor. And you can understand when a big investor like him is coming with an IPO he must be having some definite profit goals in mind.
With the Avenue Supermarts IPO date declared and the data analyzed and the background of the promoter we believe that IPO can offer good rate of returns for the investors and we maintain a BUY rating on the D-Mart IPO.