India's Dmart owner eyes debt market comeback after 7-year hiatus, bankers say

Business Recorder reported, citing two merchant bankers, that India's Avenue Supermarts intends to return to the corporate bond market after a gap of seven years. The operator of the Dmart retail chain is reportedly targeting roughly 10 billion rupees ($104.81 million) via notes with maturities of no more than three years. The bankers, who spoke on condition of anonymity, said the company has asked them to prepare the offering.

The deal is expected to be completed in the first half of September, and mutual funds are reportedly keen to buy these rarely issued securities. Avenue Supermarts last sold bonds in October 2019, a 13-month instrument that it redeemed within six months. ICRA gave the company's bonds an AAA rating on August 25.

ICRA cited the company's standing as the biggest organised food and grocery retailer, along with its large supply chain network and competitive pricing. According to the agency's note, those strengths supported healthy footfall and steady gross margins. The company did not respond to a request for comment on the planned issue.