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Avenue Supermarts, an operator of D-Mart retail chain, aims to expand its business in the existing regions, said Neville Noronha, Managing Director, Avenue Supermarts at a press conference here today.
"The company believes in a cluster-based approach and we will continue to grow our business in the existing regions--western, southern and central India," said Noronha who is trained and groomed under Radhakishan Damani. The company has presence in Maharashtra, Gujarat, Telangana, Karnataka and Andhra Pradesh, among others.
The company opened its first store in Mumbai, Maharashtra in 2002.
As of January 31, the company had 118 stores with a retail business area of 3.59 million sq.ft located across 45 cities in India.
Avenue Supermarts' initial public offering will hit the market on March 8 and close on March 10. The price band for the Rs 1,870-crore IPO has been set Rs 295-299 per equity share at face value of Rs 10 each.The minimum bid lot is 50 equity shares and is in multiples thereafter.
Avenue Supermarts will be utilizing the proceeds from the IPO for repayment of a portion of loans and for purchase of fit-outs for new stores and for general corporate purposes.
D-Mart accounts for 48 percent of the company's total retail spend.As of March 31, 2016, the company had a topline of about Rs 8,600 crore, and a net profit of about Rs 320 crore, translating into an earnings per share of Rs 5.72. Kotak Mahindra Capital Company is a global co-ordinator and book running lead manager to the issue. Other book running lead managers are Axis Capital, Edelweiss Financial Services, ICICI Securities, Inga Capital, JM Financial Institutional Securities, Motilal Oswal Investment Advisor and SBI Capital Markets.
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