Avenue Supermarts shares rise after ₹175 crore e-commerce investment

Avenue Supermarts Ltd, the parent company of DMart, saw its share price rise on Thursday after announcing a ₹175 crore investment in its e-commerce division. This news lifted the stock during intraday trading. Avenue Supermarts shares opened at ₹3,879.45 on the Bombay Stock Exchange (BSE). The price started slightly higher than the previous day's closing of ₹3,845.55. Throughout the day, the shares fluctuated, reaching an intraday low of ₹3,828.65 and a high of ₹3,879.45. The investment of ₹174.99 crore was made in Avenue E-Commerce Limited, a subsidiary of Avenue Supermarts. The company revealed it subscribed to nearly 4.68 crore equity shares at an issue price of ₹37.41 each, which includes a premium. In addition to this investment, Avenue Supermarts announced the opening of new stores in Adoni, Kurnool, and Haralur, Bengaluru. This brings the total number of stores to 398. The company's stock has rebounded well, increasing over 15% since hitting a 52-week low of ₹3,337 earlier this month. This decline was partly due to a market correction and disappointing Q3 results, which affected investor sentiment. Analysts at Jefferies India noted that while DMart faced challenges, the situation seems to be improving. Investors are advised to consult certified experts before making any financial decisions.