Avenue Supermarts Shares Climb 5% To New High On QIP Launch

Shares of Avenue Supermarts Ltd, that owns and operates Dmart supermarket chain, rose by 4.9 percent on Thursday to a new all-time high of Rs 2,360. It is the stock fourth consecutive trading session of gains.

On Wednesday, the company launched a qualified institutional placement (QIP) to raise up to Rs 4,000 crore. Shares were offered at the QIP at a discount of 11 percent to Wednesday's closing price of Rs 2,249.30.

Earlier this week, ahead of the QIP launch announcement, the stock touched a record high of Rs 2,273.10 to become one of the top 20 companies by market capitalisation, surpassing Wipro and HDFC Life.

In May, Avenue Supermarts' board had approved the issuance of 25 million shares through QIP to reduce promoter's stake to 75 percent in adherence to SEBI's rule of achieving minimum public shareholding by 20 March 2020.

At present, the promoters hold 79.73 percent stake in the company.

The company's business stands strong with the supermarket chain reporting a 53.3 percent year-on-year increase in standalone profit at Rs 394 crore for the December quarter when compared to Rs 257 crore.