The stock gave investors double the amount invested based on issue price of Rs 299.
Avenue Supermarts, the operator of retail chain D-Mart, showed a stunning performance on Tuesday as the stock more than doubled and crossed Rs 600-mark in opening itself.
The stock closed at Rs 640.75 on the BSE, rising 114.30 percent over its issue price of Rs 299 and making investors as well as its promoters rich in a day.
After debuting at Rs 604.40 on the Bombay Stock Exchange, the stock jumped to its day's high of Rs 650 (up 117.4 percent) and hit a low of Rs 558.75, though analysts feel valuations already stretched.
The stock gave investors double the amount invested based on issue price of Rs 299. For every lot of 50 shares invested in at Rs 14,950, total return would have been Rs 32,037.5, leading to a neat profit of Rs 17,087.5 (excluding brokerage charges).
Its market capitalisation was close to Rs 40,000 crore, which was much higher than five Nifty companies ACC (Rs 26,517 crore), Bank of Baroda (Rs 37,648 crore), Idea Cellular (Rs 33,494 crore), Tata Motors DVR (Rs 9,146 crore) and Tata Power (Rs 23,707 crore).
In current financial year so far, only a few stocks have more than doubled from their listing prices. These include RBL Bank (up 122.82 percent), Advanced Enzyme (up 123 percent), Quess Corp (up 117.33 percent), Mahanagar Gas (up 112.98 percent) and Ujjivan Financial (up 107.38 percent). Combined market cap of these companies is around Rs 45,908 crore.Ace investor Radhakishan Damani-owned Avenue Supermarts raised Rs 1,870 crore through the IPO, majority of which will be used for debt repayment. With its 120 retail stores, the company has major presence in Maharashtra and Gujarat.