DMart shares surged as much as 11% today
DMart shares surged as much as 11% today

DMart surges to record high, pips Bajaj Finserv, Nestle India in market value

  • The market value of DMart today surged above 1.5 lakh crore
  • Last week, DMart had entered the list of top 20 most valued companies by market capitalisation on BSE

Shares of Avenue Supermarts, the operator of DMart stores, today surged as much as 11% to a record high of 2,537 per share. In this process, the market capitalisation of DMart surged above 1.55 lakh crore. It is now the 18th most valuable company on BSE in terms of market capitalisation, ahead of Nestle India and Bajaj Finserv which are in 19th and 20th position respectively.

Last week, DMart had entered the list of top 20 most valued companies by market capitalisation on BSE, replacing Wipro. Avenue Supermarts had got listed on the bourses on March 21, 2017.

Last week, Avenue Supermarts had launched a qualified institutional placement (QIP) offering to raise up to 4,098 crore. The company will use the money to expand its store network, invest in supply chain and repay loans. In a stock exchange filing, the company said it will sell as many as 20 million shares through the QIP, at a floor price of 1,999.04 apiece.

The company's board will decide today to approve the issue price.

Mumbai-based Avenue Supermarts owns and operates D-Mart supermarket chain. The company opened its first store in Mumbai in 2002. As of December 31, 2019 the company had 196 stores with retail business Area of 6.97 million sq. ft.

For the December quarter, total revenue Avenue Supermarts stood at 6,809 crore, as compared to Rs. 5,474 crore in the same period last year.

Net profit jumped to Rs. 384 crore for Q3 FY20, as compared to Rs.247 crore in the corresponding quarter of last year. PAT margin improved from 4.5% in Q3 FY19 to 5.6% in Q3 FY20.

Avenue Supermarts shares today ended 8.5% higher at 2,481, giving it a market capitalisation of 1.55 lakh crore.

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