Avenue Supermarts IPO a huge hit; oversubscribed 104.5 times
The price band for the IPO has been set at Rs 295-299.
The initial public offer of Avenue Supermarts, the operator of retail chain D-Mart, to raise Rs 1,870 crore has been oversubscribed by a staggering 104.48 times at the end of the three-day bidding on Friday.
The IPO, the biggest since PNB Housing Finance's Rs 3,000 crore offer in October last year, received bids for 463.61 crore shares against the total issue size of 4.43 crore shares, as per data available with the NSE till 1830 hrs.
The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 144.6 times and that of non institutional investors 277.74 times, sources said. Retail investors category was also oversubscribed 7.36 times.
Last year, the IPO of Advanced Enzyme was oversubscribed 116 times and that of Quess Corp by 145 times.
Avenue Supermarts on Tuesday raised nearly Rs 561 crore by allotting shares to anchor investors. The price band for the IPO has been set at Rs 295-299.
"We expect IPO markets to remain robust as we continue to expect IPOs of companies with robust business models, strong brand recall, high corporate governance levels and stories which play on the shift from unorganized to organised segments," said Subhrajit Roy, Executive Director and Head ECM Origination, Kotak Investment Banking.
Avenue Supermarts plans to raise Rs 1,870 crore through the IPO and the proceeds would be utilised for various purposes, including loan repayment.
Nine merchant bankers -- Kotak Mahindra Capital, Axis Capital, Edelweiss Financial Services, HDFC Bank, ICICI Securities, JM Financial Institutional Securities, Inga Capital, SBI Capital Markets and Motilal Oswal Investment Advisors -- are managing the offer.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SCSS vs FD: Which guaranteed return scheme will give you more quarterly income on Rs 20,00,000 investment?
Rs 3,500 Monthly SIP for 35 years vs Rs 35,000 Monthly SIP for 16 Years: Which can give you higher corpus in long term? See calculations
Small SIP, Big Impact: Rs 1,111 monthly SIP for 40 years, Rs 11,111 for 20 years or Rs 22,222 for 10 years, which do you think works best?
Looking for short term investment ideas? Analysts suggest buying these 2 stocks for potential gain; check targets
02:19 PM IST