India's Dmart owner eyes debt market comeback after 7-year hiatus, bankers say
MUMBAI: India’s Avenue Supermarts is set to tap the corporate debt market for the first time in seven years, as it aims to raise funds through shorter duration up to three years bonds, two merchant bankers said on Wednesday. The owner of the retail brand Dmart is looking to raise around 10 billion rupees ($104.81 million) and has alerted merchant bankers to work on the issue, the bankers said…
India's Avenue Supermarts, the owner of retail brand Dmart, is preparing to enter the corporate debt market after a seven-year absence, according to two merchant bankers. The company aims to raise around 10 billion rupees ($104.81 million) through shorter-duration bonds, with a maximum maturity of three years. Merchant bankers have been notified to work on this issue, though the company has not commented.
The deal is expected to be finalized in the first half of September, with private banks showing interest. The last bond issuance by Avenue Supermarts, in October 2019, had a 13-month maturity but was redeemed within six months. The bonds received an AAA rating from ICRA, acknowledging the company's strong position as the largest organized food and grocery retailer, with an extensive retail store network, robust procurement abilities, and competitive pricing.
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