Domestic markets on Tuesday opened flat on the back of mixed global cues. At 0920 hours BSE Sensex was trading at 29,545.03, up 26.29 points or 0.09%, while NSE Nifty was trading at 9,136.30, up 9.45 points or 0.10%. The operator of supermarket retail chain D-mart, Avenue Spuremarts (ASL) made a spectacular debut on BSE. Avenue Supermarts has recently closed its Rs 1,870 crore initial public offering. The D- Mart was listed at Rs 604.40 on the BSE that us 102% premium against its IPO price of Rs 299.
On the National Stock Exchange (NSE), the stock opened at Rs 600, a 101% premium against issue price. It hit a high of Rs 616 post its listing. The IPO was the biggest since PNB Housing Finance’s Rs3, 000 crore offer in October last year. It was oversubscribed by 104 times during its IPO. The price band for the public issue of Avenue Supermarts was fixed at Rs 295-299. It was told in the earlier report that the proceeds of the issue were going to utilised for various purposes including repayment of a loan.
“ASL has reported a steady performance over the past five years. With continual store addition, coupled with improving margins, stable cash flows and control of usage of debt for expansion, the company’s performance has been sturdy. Margin improvement has been a result of operating leverage, as employee costs and other expenses reduced as a percentage of sales over time,” Yes Securities, the brokerage firm said in an IPO note.