Avenue Supermarts shares hit fresh record high as co looks to raise Rs 4,000 crore though QIP

Shares of Avenue Supermarts scaled fresh record high in Thursday’s morning trade after it launched a qualified institutional placement (QIP) to raise up to Rs 4,000 crore on Wednesday.

After opening at Rs 2250.05, the scrip hit a new high of Rs 2,360.75.

The company is selling 2 crore shares at a floor price of Rs 1,999.04, and it may allow a discount of 5 per cent on such floor price.


In May 2019, the company’s board had approved issuance of 25 million shares through QIP, which would reduce promoter’s stake to 75 per cent in adherence to SEBI rule of achieving minimum public shareholding by March 20, 2020. At present, the promoters hold 79.73 per cent stake in the company.

For the quarter ended December, Avenue Supermarts had reported a 53.3 per cent year-on-year rise in standalone profit at Rs 394 crore compared with Rs 257 crore posted for the same quarter last year.

Revenue for the quarter rose 23.90 per cent to Rs 6,752 crore compared with Rs 5,451 crore reported for the year-ago period.

With the ongoing bullish momentum in the operator of the DMart supermarket chain, the company has entered the club of top 20 companies by market capitalisation in India, outpacing companies such as Wipro, HDFC Life and ONGC. Oil-to-telecom behemoth Reliance Industries (RIL) is the country's most valued firm with a market value of over Rs 9 lakh crore followed by TCS at Rs 8 lakh crore.

Avenue Supermarts had got listed on the bourses on March 21, 2017. Since its listing, shares of the company have soared more than 250 per cent till date.

The shares of the company closed 2.01 per cent higher at Rs 2294.45 on BSE.