Avenue Supermarts, which owns and operates D-Mart stores, on Tuesday raised R561 crore on Tuesday ahead of its initial public offering (IPO).
Avenue Supermarts sold more than 1.87 crore shares to 35 anchor investors at a rate of R299 per piece. The issue will begin March 8 and close on March 10.
Investors acquiring shares in anchor allotment include General Atlantic Singapore, Fidelity, Franklin Templeton, Goldman Sachs, JP Morgan, HSBC, Motilal Oswal, UTI among others.
Avenue Supermarts aims to raise R1,870 crore from the public offering. It will use R1,080 crore from the net proceeds of the issue for repayment of loans and redemption of non-convertible debentures, R366 crore for construction and maintenance of new stores and the remaining for general corporate purposes.
The company has a total debt of R1,400 crore as of December 2016.
According to guidelines put out by the Securities and Exchange Board of India (Sebi), 50% of the shares are reserved for qualified institutional buyers (QIB) category, 15% for high net-worth individuals (HNIs) and 35% for retail investors. Up to 60% of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds. Five per cent of the QIB category, excluding the anchor investor portion, has been reserved for mutual funds on a discretionary basis.
For the nine-month ended December 2016, Avenue Supermarts posted a net profit of R387.4 crore. For the year ended March 31, 2016, the company posted a net profit of R318.75 crore, against R211.6 crore in the previous year.
Kotak Mahindra Capital, Axis Capital, Edelweiss Financial Services, HDFC Bank, ICICI Securities, JM Financial Institutional Securities, Inga Capital, SBI Capital Markets and Motilal Oswal Investment Advisors will manage the IPO.