Saturday, February 11, 2017

D-Mart Avenue Supermarts IPO - Should You Subscribe?

   

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Avenue Supermarts is the parent company of D-mart supermarket retail chain. The company is going to raise 1870 crore from capital market. It is owned by Radhakishan Damani. The IPO is going to be blockbuster IPO of 2017 as the Avenue Supermarts IPO grey market is already been on higher side and trading with good volumes.

Financial:
As we see the results, the financial is very strong. The revenues is almost four times compare to 2011-12 in 2015-16. The revenues grown from Rs.2222 crore in 2011-12 to Rs.8606 crore in 2015-16. The Net profit is on a higher side as per revenues. It increased 5.5 times compare to 2011-12 to 2015-16. The things looking better for Avenue Supermarts IPO in term of financial. (YOY Results)

Objects of IPO:
- Prepayment of Loans
- Purchase of New Outlets
- General Corporate Purposes

Price Band:
Avenue Supermarts IPO price band is not cleared yet but as per the estimates it looks to settle around Rs.290 to 299. It means the IPO price is attractive for investors and the subscription will be on higher side in all the segments.

Grey Market:
Avenue Supermarts (D-Mart) IPO grey market is active and it is very good as well. It looks like IPO might list with 40-50% premium of their IPO price if price band will be around Rs.299.

Market Expectations:
Market is expecting a block buster listing of D-mart IPO as the price band and grey market look very attractive. Let's hope what is coming up but still there is so much speculations is going on.

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