Avenue Supermarts, the corporate parent of D-Mart supermarket retail chain, has filed its draft prospectus with market regulator SEBI. The company is looking to raise up to INR1,870 crore (INR18.7 billion) through the upcoming IPO. Net proceeds from D-Mart IPO will be used towards repayment or prepayment of a portion of loans and redemption or earlier redemption of NCDs availed by the company and construction and purchase of fit outs for new stores and general corporate purposes.
Out of the total, INR1,080 crore (INR10.8 billion) from D-Mart IPO will be used towards debt reduction while the Thane-based company plans to use INR366 crore (INR3.66 billion) to construct or purchase new outlets. The remaining amount will be used for general corporate purposes.
Kotak Mahindra Capital Company is the global coordinator and Book Running Lead Manager (BRLM) to the issue. Axis Capital, Edelweiss Financial Services, HDFC Bank and ICICI Securities, Inga Capital, J M Financial Institutional Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are other book running lead managers to the issue and Link Intime India has been appointed the registrar to D-Mart IPO.
Earlier, Avenue Supermarts CEO Neville Noronha confirmed that the company is working on listing itself. Avenue Supermarts is owned by well-known stock market investor Radhakishan Damani and operates 112 stores across 41 cities in Maharashtra (58), Gujarat (26), Telangana (13), Karnataka (7), Andhra Pradesh (3), Madhya Pradesh (3), Chhattisgarh (1) and NCR (1).
The company’s differentiated business model revolves around ownership or long term lease of the store space. During the financial year ended 31 March 2016, the company posted a profit of INR321.2 crore (INR3.21 billion) on revenues of INR8,606 crore (INR86.06 billion).
GR Infraprojects – one more from infra space
Separately, road-focused infrastructure player GR Infraprojects also filed draft prospectus for its upcoming IPO. The company plans to issue new shares worth INR240 crore (INR2.4 billion) through the IPO which will also involve sale of 5,413,540 shares by three existing shareholders – Lokesh Builders Private Limited, India Business Excellence Fund I and India Business Excellence Fund.
Proceeds from GR Infraprojects IPO are proposed to be used towards repayment or pre-payment of borrowings, purchasing capital equipment for the EPC business and for general corporate purposes. The IPO will be managed by HDFC Bank, ICICI Securities, IDFC Bank, Motilal Oswal Investment Advisors and SBI Capital Markets while Karvy Computershare is the registrar to the issue.
The company – which primarily operates in Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh – posted net profit of INR101.3 crore (INR1.01 billion) in FY2016 on revenues of INR2,028.4 crore (INR20.2 billion).