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D-Mart operator rallies 9%, at record closing high amid QIP success

The company had received approval for QIP from its board members and shareholders in May and August last year, respectively.

February 10, 2020 / 04:50 PM IST
 
 
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Avenue Supermarts, the retail chain D-Mart operator, rallied 8.6 percent to end at record closing high of Rs 2,484.15 on February 10 following strong demand to its QIP issue launched last week.

The stock gained 30 percent in the last 15 days and nearly 98 percent in the last 9 months amid strong fundamentals. It touched an intraday record high of Rs 2,537 (up 11 percent).

Ace stock investor Radhakishan Damani-owned company launched qualified institutional placement on February 5, to raise Rs 3,998.08 crore and dilute the stake to meet minimum public shareholding norms.

Avenue received around Rs 24,000 crore worth of demand for the issue and a lot of global as well as domestic fund houses put their bids, reports CNBC-Awaaz quoting sources.

Considering the earnings growth expectations and consistency in new store additions, the participation was seen from HSBC Global, WhiteOak, GIC (formerly known as Government of Singapore Investment Corporation), SBI Mutual Fund, Birla Mutual Fund, Axis MF etc, the report said.

The company had received approval for QIP from its board members and shareholders in May and August last year respectively.

On February 5, Operations Committee of the company passed resolutions for authorising the opening of the issue of up to 2 crore equity shares on February 5.

The floor price for the issue was fixed at Rs 1,999.04 per share.

Meanwhile, the D-Mart operator showed a healthy 53.3 percent growth in Q3 FY20 profit-driven by lower tax cost, and higher revenue and operating income.

Revenue from operations grew by 23.9 percent year-on-year to Rs 6,751.9 crore during the quarter that ended in December 2019.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBTIDA) increased 30.8 percent year-on-year to Rs 593.1 crore, and its EBITDA margin expanded by 50 basis points to 8.8 percent in Q3 FY20.

Moneycontrol News
first published: Feb 10, 2020 04:50 pm

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