Skip to main content

DMart IPO review and details

The initial public offer (IPO) of Avenue Supermarts, the owner of DMart, which is likely to be floated in the next few weeks, is expected to command a valuation of `18,000 crore, much higher than the earlier expectation of `7,000 crore.

The issue will be open for bidding from March 8 to March 10.  Avenue Supermarts has reserved 1.87 crore shares for anchor investors' book, 1.24 crore for qualified institutional buyers, 93.59 lakh for non-institutional investors and 2.18 crore shares for retail investors.

dmart ipo



About the company:
D-Mart operates close to 120 stories, most of them concentrated in Maharashtra and Gujarat. As of March 31, 2016, the company had a topline of about Rs 8600 crore, and a net profit of about Rs 320 crore, translating into an earnings per share of Rs 5.72. The company’s earnings have been growing at 31 percent compounded for the preceding two years. Extrapolating that, the company is expected to report an earnings per share of roughly Rs 7.6 for this financial year. An issue price of Rs 300 would mean a price earnings multiple of roughly 40 times estimated FY17 earnings.

Equity shares issued through public issue are proposed to be listed on both exchanges - BSE and National Stock Exchange of India.

Issue Details:


  • Issue Open: Mar 8, 2017 - Mar 10, 2017.
  • Issue Size: 62,393,631 Equity Shares of Rs 10 aggregating up to Rs 1,865.57 Cr.
  • Face Value: Rs 10 Per Equity Share.
  • Issue Price: Rs. 290 - Rs. 299 Per Equity Share.
  • Market Lot: 50 Shares and  Minimum Order Quantity: 50 Shares. 
  • Listing At: BSE, NSE.

DMart's upbeat valuation is likely to buoy stocks of other retailers such as Future Retail and CESC which owns Spencer's Retail.
Labels:

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !
Read more

Tracking Difference in ETFs and Index Funds

 As we all know, an index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Nifty 50 Index. Tracking difference is the discrepancy between Index Fund/ ETF performance and index performance. Below is the ETFs and Index funds with high tracking error.  The above tracking error is since inception. ETFs and Index funds are considered to be low cost, but in here in India, the tracking difference are quite high and add to that expense ratio, the total works out to over 1-3% and higher in certain cases.  These ETFs and Index funds are no longer low-cost as one would expect them to be. 
Read more