On September 29, 2016, Avenue Supermarts Limited, the parent company of D-Mart, filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise Rs. 18,700 million through an Initial Public Offering (IPO) of its equity shares . D-Mart planned to use Rs. 10,800 million from the proceeds of the IPO for debt repayment, Rs. 3,670 million for opening new stores, and the remaining for corporate purposes.

D-Mart, a chain of retail stores in western and southern India, was promoted by Radhakishan Damani (Damani). The company was the third largest branded retail chain in the country in terms of revenue after Kishore Biyani’s Future Retail (Future) and Mukesh Ambani’s Reliance Retail (Reliance) in 2016 (Refer to Exhibit I). Damani, a well-known investor and trader on the Indian Stock Market, had created a unique profitable business model in the low margin retail sector. D-Mart had managed to achieve a CAGR of 40% since 2012 and shown a consistent rise in profits and number of stores at a time when its competitors were managing to barely survive. Industry experts, investors, and analysts had been closely observing the growth of D-Mart and had been waiting for the company to get listed. ..

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