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.

Comments

  1. Lottery system is really difficult to understand. Many investors have applied for the IPO and ended with weird expressions. Looking at the numbers, nothing was extra ordinary about it but the hype created by the investors these days for the IPO actually making it attractive. Sharing personal experience about new entrants of the stock market, even many of them want to buy IPO without analysing anything, just on the attraction of listing gains. Listing gains are actually added value in the recent past IPOs and making market more attractive in coming time as well.

    ReplyDelete

Post a Comment

Popular posts from this blog

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare



Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…

What is NIFTY BEES - ETF?

NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.




The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …