Avenue Supermarts ends 114% higher vs IPO price; book profits, say analysts
Avenue Supermarts (ASL), the operator of supermarket retail chain D-Mart, made a stellar debut on the bourses by listing at Rs 604.40 on the BSE, 102% premium against its initial public offer (IPO) price of Rs 299. On the National Stock Exchange (NSE), the stock opened at Rs 600, a 101% premium against issue price. It hit a high of Rs 650 post its listing and settled 114% higher at Rs 342 on the BSE. On NSE, the stock settled at Rs 648. Independent market analyst Ambareesh Baliga advised investors to book profits because the listing gains have been better than expected and the valuations are also not too cheap. AK Prabhakar of IDBI Capital also suggested to take profits at the current prices as the chances of more upside are limited, while the risk of downside has grown. “Valuations have become expensive at the listing price of over Rs 600. One can hold the stock for the long-term but traders should book profits and re-enter only i...