Avenue Supermarts Ltd., which operates the D-Mart chain of retail stores, saw 120 percent demand for shares offered on the first day of its initial public offer on Wednesday as of 4 pm.
The Rs 1,870-crore public offer received bids for 5.26 crore shares versus 4.43 crore shares on offer, data provided by one of the lead managers Axis Capital showed.
The 1.26 crore shares reserved for qualified institutional investors received 167 percent subscription, with bids coming in for 2.11 crore shares. Half of the total shares on offer have been kept aside for this category.
The portion for retail investors was subscribed 1.24 times, receiving bids for 2.75 crore shares against the 2.18 crore shares reserved for the category.
The participation of high networth individual participation was relatively lower. The category saw 42 percent subscription with bids for 39.9 lakh shares.
The intial public offer, which has a price band of Rs 295-299, will close on March 10. It is the biggest public issue since PNB Housing Finance's offering in October last year, which had garnered Rs 3,000 crore.
On Tuesday, the Radhakishan Damani-backed company raised Rs 561 crore by allocating 1.87 crore shares to 35 anchor investors at the upper level of the price band.
Avenue Supermarts will use the proceeds from the stake sale to repay debt, and the remaining for maintenance and new stores, it said in its draft red herring prospectus.
Also Read: D-Mart's Rs 1,870-Crore IPO Opens: Here's What You Need To Know
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