DMart IPO (Avenue SuperMarts) IPO Status DRHP Review

Below is the Review of DMart IPO. The DMart IPO is one the most sought after Public Issues in the recent times. The DMart IPO Status is in process and the IPO Date is in early 2017. DMart is one of the leading Retail chains in India and also a household name. Through this IPO, DMart is planning to sell around 36 Lakh Share.

The Draft Red Herring Prosepctus has been filed with the SEBI and is in process Status, which will be approved very soo. Once approved, DMart will proceed with the IPO and raise the capital in 2017.  DMart was incorporated as ‘Avenue Supermarts Private Limited’ on May 12, 2000 at Mumbai as a private limited company.

The name of the DMart Company was changed to ‘Avenue Supermarts Limited’ due to conversion from a private company to a public company on May 3, 2011. Also Read the IPO Details of GR Infra Limited,  Prataap Snacks, Majestic Research and Green Signal Bio.

Red Herring Prospectus : DMart IPO

Draft RHP issued under DMart IPO Download

Dmart IPO Details

Issue Capital (approx) Rs.1.800 Crore
Issue Date  March
IPO Type Pure Offer
Shares for Sale 36,74,800
Company Valuation Rs.18,000 Crore
Share Issue Price Rs.299-295
MOQ 50 Shares

Dmart IPO Issue Status

Subscription Type Over Subscribed
Subscription Count 104 Times
Final Price Band Rs.299

The Dmart IPO issue had closed earlier last week with a mind-boggling overall subscription of about 105 times, stock exchanges data showed.

At the end of Friday’s bidding, the portion reserved for QIBs (qualified institutional bidders) was subscribed by a whopping 144.61 times, while non-institutional high-networth individuals portion was bid for about 278 times.

The figures make the retail participation look pale, which, at 7.15 times subscription against the reserved size, is also huge by market standards.

Dmart IPO Open Date & Close Date

Dmart IPO Open Date 8th March, 2017
Dmart IPO Close Date 10th March, 2017

Business Overview : DMart IPO

DMart are an emerging national supermarket chain, with a focus on value-retailing. According to Technopak, in Fiscal 2016 DMart Company was one of the largest and the most profitable F&G retailer in India. DMart offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.

Operatoins : DMart IPO

DMart operate and manage all DMart stores. DMart operate predominantly on an ownership model (including long-term lease arrangements, where lease period is more than 30 years and the building is owned by us) rather than on a rental model.

DMart open new stores using a cluster approach on the basis of adjacencies and focusing on an efficient supply chain, targeting densely-populated residential areas with a majority of loDMartr-middle, middle and aspiring upper-middle class consumers.

Business Approach : DMart IPO

DMart business approach is to retail quality goods at competitive prices. The majority of products stocked by us are everyday products forming part of basic rather than discretionary spending.

Future Endeavors : DMart IPO

DMart endeavor to minimise DMart operating costs in several ways such as owning underlying real estate or entering into long-term lease arrangements for a majority of DMart stores in order to minimise rental costs, procuring goods directly from vendors and manufacturers, employing an efficient logistics and distribution system and maintaining a strong focus on product assortment to minimise inventory build-up, supported by efficient store operations.

Store Offerings : DMart IPO

DMart store offerings provide DMart customers with a distinctive shopping experience, comprising of a wide range of everyday value retail products sold in a modern ambience and with the feel of a large retail mall.

DMart believe DMart endeavor to facilitate one-stop-shop convenience for DMart customers‘ everyday shopping needs, along with DMart competitive pricing due to DMart local market knowledge, careful product assortment and supply chain efficiencies, has helped us achieve growth and success.

Capital Structure : DMart IPO

DMart IPO Capital structure

The initial authorised share capital of our Company was increased from Rs.1,000,000 comprising of 100,000 equity shares of Rs.10 each to Rs.10,000,000 comprising of 1,000,000 equity shares of face value of Rs.10 each pursuant to a resolution passed by our Shareholders on September 30, 2002.

Management Team : DMart IPO

In terms of the Articles of Association, our Company is required to have not less than three Directors and not more than 15 Directors. As on the date of this Draft Red Herring Prospectus, our Board comprises six Directors, including three executive Directors, one non-executive Director and two independent Directors.

Remuneration to Executive Directors of DMart

Name of the Director Remuneration (in Rs. million)
Ignatius Navil Noronha 179.55
Ramakant Baheti 7.50
Elvin Machado 3.88

Interests of Key Management Personnel : DMart IPO

The Key Management Personnel of DMart do not have any interest in our Company other than to the extent of the remuneration or benefits to which they are entitled to as per their terms of appointment and reimbursement of expenses incurred by them during the ordinary course of busines.

Further, the Key Management Personnel may be regarded as interested in the Equity Shares held by them, if any, and to the extent of any dividend payable to them and other distributions in respect of such Equity Shares.

Liquidity and Capital Resources : DMart IPO

Over the past three years, Dmart have been able to finance our working capital requirements through cash generated from our operations, bank loans and facilities and issuance of non-convertible debentures.

Dmart have relied on cash from internal resources and loans from banks to finance the expansion of our business and operations. Since commencement of our operations, Dmart have expanded to 110 stores and 21 distribution centers as on March 31, 2016.

As on September 15, 2016, Dmart have further expanded to 112 stores and 21 distribution centres. Dmart believe that after taking into account the expected cash to be generated from our business and operations and the proceeds from our bank loans, Dmart have sufficient working capital for our present requirements and anticipated requirements for capital expenditures and other cash requirements for 12 months following the date of this Draft Red Herring Prospectus.

Closing Statement : DMart IPO

The DMart IPO is likely to be in high demand once approved. The company (Avenue supermarts) is likely to get over subscription of shares by around 4 times. For any further questions on DMart IPO, contact us at mail@finapp.in. The Date of DMart IPO has not yet been announced and same is with the status.