D-Mart
BUSINESS

D-Mart, India’s Most Remarkably Successful Retail Store..!!

India’s most profitable supermarket D-mart which has shares of Avenue Supermarts is run by Radhakishan Damani.  The company’s shares were sold at Rs 299 a piece at the initial Public offering (IPO). The share value surged as much as 106% after listing to RS.604.4 in the Bombay Stock Exchange on Tuesday, making it not only the first retailer to list in a decade, but also perhaps the best IPO listing in recent Indian Corporate history.

What is IPO?

It is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company is issuing equity to the public for first time, it is known as Initial Public Offering.

After the listing, D-Mart made some of their employees millionaires overnight. According to the company’s IPO prospectus, Managing Director, Navil Noronha now has net worth of Rs.900 Crore. While on the other hand, company’s CFO Ramakanth Baheti’s net worth is nearly Rs.200 Crore from the 31.75 lakh shares that he holds in the company. D-Mart’s employees together hold about 7% of the company, currently worth about Rs 2,800 crore.

It is a bit surprising to know that, India’s most profitable supermarket isn’t backed by Ambani or Birla. Radhakishan Damani’s net worth is a staggering amount of $6 billion, outpacing billionaires Rahul Bajaj ($3.5 billion), Anil Agarwal ($3 billion) and Anil Ambani ($2.7 billion) on the billionaire list.

D-Mart’s sales mix is largely limited to food and groceries. Their strategy has marked  difference from nearly every other Indian retailer. Whereas other companies have expanded quickly into multiple segments with differentiated retail chain, D Mart has restricted segmentation.This makes D-mart more profitable than others.

Apart from owning a supermarket chain, 61-year Old Radhakishan Damani is also a mentor to billionaire investor Rakesh Jhunjhunwala. According to Forbes, he holds stakes in a range of companies, from tobacco firm VST industries to cement maker India Cements. Read more Indian Startup news.

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D-Mart, India’s Most Remarkably Successful Retail Store..!!
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