The shares of D-Mart’s parent company Avenue Supermarts’ market cap crossed the Rs 50,000-crore mark on Monday with its share price increasing to Rs 806.80, PTI reported. D-Mart has now become the world’s most expensive brick-and-mortar retailer on various financial parameters, reported The Economic Times.
The shares of Avenue Supermarts on Monday reached an all-time high and rose by 7.5% during intra-day trade while ending the day 3.3% up. As of 1 pm on Tuesday, Avenue Supermarts was higher by 0.69%.
With the surge in Avenue shares, its founder Radhakishan Damani has entered the India’s richest 20 club, PTI reported.
The market cap-to-sales of Avenue, which is the premium that investors are ready to pay for its future sales, has been trading at 5.6 times, ET reported. Meanwhile, the market cap-to-sales of other giants, such as Wal-Mart, Metro, Target among others, were trading below one.
Avenue’s share prices have been trading three times higher than its issue price of Rs 299 per share since March 21, when it had made its debut on stock exchanges. By the end of Monday, Avenue was worth $7.52 million, higher than Tata Steel, Cipla and Tech Mahindra.
The supermarket chain, which was started by Radhakishan Damani, opened its first store in 2002 in Mumbai’s Powai area. It now has branches in 125 locations in Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh and the National Capital Region. The IPO was conducted by Kotak Mahindra Capital, Axis CapitalBSE, Edelweiss Financial ServicesBSE, HDFC BankBSE and ICICI Securities.
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