Avenue Supermarts – the firm that controls supermarket chain DMart – crossed Rs 1.50 lakh crore in market capitalisation on Monday, surpassing Nestle and Bajaj Finserv to become India’s 18th most valuable company. The company listed on March 21, 2017 at a market capitalisation of Rs 39,988 crore. Since then, the stock has risen 290 per cent.
Avenue shares rose 8.6 per cent to close at an all-time high of Rs 2,484.15 on Monday after the company announced a share sale for institutional investors on February 5. The company planned to raise up to Rs 4,000 crore at Rs 2,049 apiece. Avenue has not disclosed the final details of the qualified institutional placement.
The stock has jumped 35 per cent so far this year. If an investor received shares worth Rs 1 lakh crore during the initial public offer of Avenue Supermarts in March 2017, it would have become Rs 8.31 lakh crore on Monday. After the run-up in the share price, Avenue’s founder Radhakishan Damani, also considered an astute stock market participant, is now India’s sixth richest person with a net worth of $11.9 billion, wealthier than Gautam Adani ($10.8 billion) and Sunil Mittal ($9.6 billion)