The Radhakishan Damani supermarket, promoted by the billionaire, which manages the D-Mart retail chain, has surpassed the market value of 1 billion rupees in terms of market capitalization.
The shares, listed on stock exchanges less than 15 months ago in March-17, reached a record high of Rs 1,619.95 yesterday, bringing its market value to Rs 1.01 lakh crore. Particularly since the IPO on March 17, the shares of Avenue Supermarts have skyrocketed and they multiply with more than 5 the wealth of shareholders in just 15 months. We look more at his career since his IPO.
IPO Blockbuster :
The shares of D-Mart had an IPO, as the shares listed on Rs 603, at the issue price of Rs 299, despite some brokers advising investors to remain neutral on the issue has given the rich valuations. Many analysts have also praised the business model of the company and with it the growth that it offers investors. After dramatic gains after the list, market voices had emphasized the overstatement of D-Mart.
The turnout continues
Even after the blockbuster IPO, the D-Mart campaign continued to grow relentlessly. In September-17, the shares reached the Rs 999 mark, which caused a fuss in the markets. The share has more than tripled. The investors’ fortune is just over five months compared to the issuance price of Rs 299. Jonathan Schiessl, the investment director at Ashburton Investments, said that at first, he felt that the company was overvalued. Jonathan Schiessl told CNBC TV18: “We have done a lot of work and decided to stay away, the appreciation just kept us away, sometimes you just have to bite the bullet.”
Goldman Sachs initiates a hedge
At the end of September, the global conglomerate for financial services, Goldman Sachs, started a hedge on Avenue Supermarts, with a target price of Rs 1,586, which represents an increase of more than 50% of the share price on that date. Goldman Sachs estimates that the EBIT of the company is expected to rise 13 times over the next 10 years. He also added Avenue Supermarts to the list of convictions.
Latest results for the fourth quarter
Avenue Supermarts recorded a net increase of 73% of the net profit on an annual basis of Rs 167 crore for the period from January to March. However, these results were considered to be below market expectations and shares fell to 4% the next day. “D-Mart 4QFY18’s net profit of Rs 1.7 billion was lower than the estimates due to lower than expected annual sales growth of 22.5% and lower margins,” the company said. brokerage Kotak effects in a report.
Which cap of Rs means 1 lakh crore
With this achievement, the experienced investor Radhakishan Damani becomes the ninth richest Indian and Avenue Supermarts becomes the 29th largest company in terms of market value. It is the only retail chain among the top 30 companies. Damani currently has a net worth of $ 9.2 billion, according to the Bloomberg Billionaire index.
In March 2018, Damani personally owned 39.41% of the capital of Avenue Supermarts, according to data from Captain. However, the company announced the intention of promoter Damani to sell up to 1 percent of the company’s total paid-up share capital, totaling 62.40,844 shares to meet the minimum share ownership requirements.
The statement stated that the sale of shares will take place in the period beginning on May 21 to June 14 or the actual date of completion of the sale of all participating shares, whichever comes first. The shares of Avenue Supermarts were traded this afternoon at Rs 1,600.95 on BSE.