D-Mart man Srikishan Damani has doubled his fortune with the Avenue Supermarts IPO raising Rs.561 crore in investor shares and another Rs 1870 crore from retail investors. Priced at Rs.299, the IPO was subscribed 104 times more and was listed on Tuesday morning at Rs.604 and came down to Rs.560 range once before going up to Rs.600 range.
The market watchers and holders of D-Mart shares listed as AVESUP on BSE and NSE are abuzz with the unprecedented hype in share markets after Damani’s bid to buy VST cigarette-making company in 2001 and exited the exchange rued and ruffled. His re-entry with overtly under priced share has created the initial kick to the market watchers and the amiable political environment has given it enough clout to linger on.
Social media is going gaga over the 100% return for any investment made over a period of 11 days. Ankit Chaudhary @entrepreneur987 writes: "15000 Rs profit on investment of 15000 in 11 days. Annualized Return: 3318% return. All hail Radhakishan Damani Ji," and another hashtag #Historymade is going viral on Twitter.
Another Shyam Sekhar @shyamsek said:"Indian market salutes Radhakishan Damani. His stocks are all having a blast out there. Market’s RDx day."
Murugavel @murugavell writes: "DMART IPO 4.44 Cr. shares, so for traded 4.77 Cr, they are very genius, in fact, they are the market, they know what to do & when to do."
Veeram Dev @VeeramDev said:"What a blockbuster opening by Dmart…..100% premium….it is something more than awesome…..life is awesome."
Annu Aggarwal @annu_aggarwal tweets:"People r comparing #DMart with Future Group or Trent…but I feel it should be compared with Berkshire Hathway. Both r genuine investors."
Shweta Roy @shweraroy tweeted before the IPO was listed on stock exchange and her prediction was true. "Mega supermarket IPO #DMart will hit the street tom.Issue over-subscribed over 100x. Grapevine says stock could touch Rs 600 at opening."
Basant Maheswari, author of The Thoughtful Investor:“surprising to see people who have got 50 shares in D-Mart celebrating as if they have been given 50% of the company!”
Yatin Mota @YatinMota wryly comments:"It’s certainly a D-day of Market:
R. Balakrishnan @BalakrishnanR advises: "Sell the D Mart share on listing and with the profits, buy yourself something at D Mart. Thank you, RKD."
Vikash Jain @JainVikash:"Dmart market more than interglobe aviation and PNB…stunning debut at 37000 market cap."
Kush Katakia @kushkatakia: "Ignore the hype.. Focus on the process of wealth creation by this monumental man called Mr. R. K. Damani."
One @b50 tweeted: “50 shares of DMart allotted! Never going to sell them, will buy a 3BHK in Bandra with these 50 shares in 2037.” And this sums up the value of D-Mart shares which people may not sell off easily.
Screen grab of Avenue Supermart (D-Mart) share price at Rs.600, double its offer price on the opening day (Moneycontrol.com photo grab)