The listing of D-Mart or Avenue Supermarts was like getting ek-pe-ek-free offer! As against the IPO price of Rs.299, it got listed on the BSE at Rs.604.40, a jaw-dropping 102% upside listing!

The stock hit an intra day high at Rs.615 and low was at Rs.558.75.

The IPO had received an overwhelming response – it was subscribed 104.59 times; the issue was for Rs.1326.70 crore and it received bids totaling Rs.1.38 lakh crore. This also goes on to show that if there is a good issue, rightly priced, there is so much money which can chase it and make it into a super success.

Avenue Supermarts is 91.36% owned by ace investor Radhakishan Damani and family and that is one of the biggest reasons why this issue saw the kind of response it did. D-Mart runs 118 food and grocery stores, under ‘DMart’ brand, covering 3.6 million sq.ft. retail space, mainly across Western India, with ~75% stores concentrated in Maharashtra and Gujarat.

In our IPO Analysis, we had said, “Avenue Supermarts scores on fundamentals and pricing. Promoter standing is a cherry on the cake, making the issue a subscribe, both for short and long term.”