Stellar debut for ASL on BSE

The IPO from Avenue Supermarts (ASL), the operator of super market chain D-Mart made a blockbuster debut on the bourses listing at more than double its issue price on Tuesday, which is likely to encourage more investor participation in the forthcoming primary market issuances.

The IPO listed at `604.40 on the BSE, a premium of 102 per cent to its issue price of `299 per share. After hitting an intra-day high of `650, the stock finally ended the day at `640.75, gaining 114.30 per cent.

The sharp surge in its prices also helped the company to enter the top 100 club in terms of market capitalisation.

It is now the 65th most valued firm on the domestic bourses with a total market capitalisation of `39,998 crore.

Experts have cautioned investors against making fresh investment at current levels citing stretched valuations.

“The stock of Avenue Supermarts has witnessed more than 100 per cent upside on listing day and it is now trading at 68.8 times its price earning multiple. We believe that all the positive aspects of the company are already factored in the current stock price.

“Hence, we recommend investors to book profits. Going forward, we don’t expect multiple re-rating due to stretched valuations,” said Amarjeet Maurya, senior equity research analyst, mid caps at Angel Broking.