DMart's Rs1,870-cr share sale subscribed more than 5.71 times

The Rs1,870-crore initial public offer (IPO) of Avenue Supermarts, which owns supermarket chain DMart, was subscribed 5.71 times on Day 3 of the bidding process.

Data available with stock exchanges showed that the issue had received bids for 253.1 million shares against the 44 million shares on offer.

The IPO is the biggest since PNB Housing Finance's Rs3,000 crore offer in October last year.

The portion the issue set aside for qualified institutional buyers (QIBs) was oversubscribed 9.14 times and that for non-institutional investors 4.97 times.

Retail investors category was subscribed 4.06 times of the shares on the offer.

The share sale, which opened on Tuesday, had raised Rs561 crore by allotting 18.76 million shares to 35 anchor investors, including the government of Singapore, Fidelity, TRowe Price and JP Morgan, among others, at Rs299 apiece.

The shares are being sold in the price band of Rs295 to Rs299 each.

The minimum bid lot is 50 equity shares and in multiples of 50 thereafter. The share sale will end by the close of trading today.

At the price band of Rs 295–299 per share, the IPO is priced at a PE of about 58.5x its consolidated FY16 EPS and about 36.1 times its 9MFY17 annualised profits, say analysts.

Avenue Supermarts proposes to utilise the IPO proceeds for various purposes, including loan repayment.

Nine merchant bankers - 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 - are managing the offer.