Shares of Avenue Supermarts Ltd., which runs D-Mart supermarkets, more than doubled on its stock market debut valuing the retailer at Rs 40,000 crore at close, more than thrice the market capitalisation of its biggest rival Future Retail Ltd.
The stock closed 114 percent higher at Rs 641 after listing on the BSE, the first by a retailer in a decade. The shares were issued at Rs 299 apiece in the initial public offering.
Avenue Supermarts is the third company to list at a premium this year as the benchmark Nifty 50 index scaled all-time highs. The index closed unmoved on Tuesday.
D-Mart added Rs 21,331 crore to its valuation on the first day of trading. Radhakishan Damani and his family, 82.2 percent owners of D-Mart’s parent, saw the value of their holdings jump more than Rs 17,531 crore.
The supermarket chain with 117 stores will use the proceeds from the stake sale to repay debt, and the remaining for maintenance and new stores, it said in its draft red herring prospectus.
The last retail player to get listed was V2 Retail Ltd. (earlier known as Vishal Retail), which went public in July 2007. The company’s shares had closed nearly 179 percent higher on debut.