D-Mart’s parent company Avenue Supermarkets Ltd joined the elite club bandwagon on with Rs. 1 trillion market capitalisation after its share price reached Rs. 1,608.50, 1 percent up from its previous close on BSE.
The stock has gained 20 percent in last three weeks while it has gained 35 percent in this year till date. The scrip has jumped 373.86 percent from its offer price of Rs 299 since its debut in March 2017.
The surge in share has come after D-Mart promoter Radhakishan Damani sold nearly 6.2 million shares or 1 percent stake in Avenue Supermarts last week to ensure that the firm meets the minimum public shareholding norms. Moreover, the company has also made it in the MSCI India Domestic and MSCI India Domestic Small Cap Index, with effect from 1 June. Avenue Supermart’s low price, low cost’ business model offers the lowest prices to consumers by keeping costs lower.
Earlier, the news highlighted how the grocery retail chain was being managed by Radhakishan Damani. The Avenue SuperMarts has been in news being an efficient supplier management and tight control of inventory, which results in limiting working capital.
In terms of market capitalization, Avenue Supermarkets competes with leaders such as Power Grid, UltraTech Cement, Mahindra & Mahindra and Wipro. The firm has reported a 72.9 percent year on year growth in net profit at Rs. 167 crores for March quarter.