DMart looks to raise up to ₹4,098 crore through QIP to fund business expansion

Avenue Supermarts Ltd, which runs the popular supermarket chain DMart, on Wednesday launched a qualified institutional placement offering to raise up to ₹4,098 crore. “Our company proposes to utilize the net proceeds to augment long-term resources for financing our expansion plans, which include funding expenditure towards implementation of our strategy on expanding our store network and increasing the efficiency of our supply chain network, including warehousing facilities and related acquisition of land,” Avenue Supermarts said in a prospectus filed with the stock exchanges. “We intend to further enhance our position in the retail supermarket business in Maharashtra, Gujarat, Telangana, Andhra Pradesh and Karnataka by increasing our market penetration and expanding our store network in these states. While the company is eyeing growth capital through this fundraise, the share sale was also necessitated by Sebi norms that require listed companies to reduce their promoter shareholding to 75% within three years from listing.