D-Mart stock gains 13% on traction from large funds

Avenue Supermarts, which runs D-Mart stores, rose 13 per cent on the stock market on Friday after Thursday’s five per cent rise. The market is abuzz that large fund houses are lapping up the stock.
The stock, which opened at Rs 664, touched an intra-day high of Rs 761 and closed the day at Rs 750.50. The Avenue Supermarts scrip has gained 151 per cent since listing. Avenue Supermarts diluted only a 10 per cent stake in its recent IPO. Around 82 per cent of the company’s shareholding is with the promoters and another eight per cent with pre-IPO investors. Radhakishan Damani and his family became richer by Rs 4,400 crore in a day as the D-Mart stock went up. Since the IPO, which was priced at Rs 299, the value of Damani’s stake in Avenues Supermart has gone up from Rs 15,339 crore to Rs 38,502 crore, a gain of Rs 23,163 crore.  Future & Option Trading Tips

Nearly 90 per cent of the float is under a one-year lock-in. Also, the bulk of investors who bought in the IPO are long-term investors and the one-month anchor investor lock-in is still applicable on the stock. “There could be just Rs 2,000 crore worth of shares available for active trading. Majority of the IPO investors, especially institutional investors, have entered the company from a long-term perspective. Hence there is a shortage of supply,” said a broker. “On the other hand, demand for the stock has increased since listing as many investors that did not receive allotments during the IPO are lining up to buy shares from the secondary market,” the broker added. US-based brokerage JP Morgan in a report released on Friday initiated coverage on the stock with a “neutral” rating. On Thursday credit rating agency CRISIL upgraded the long-term bank facilities and non-convertible debentures of the company.  Financial Astrology Tips