Axis Mutual Fund Files Draft with SEBI for Thematic Scheme: Axis Services Opportunities Fund

Axis Mutual Fund has launched the Axis Services Opportunities Fund, a thematic open-ended equity scheme that aims to capitalise on the growing momentum within India’s services sector. The fund seeks long-term capital appreciation by investing in a diversified portfolio of companies that generate or are expected to generate revenues from service-related activities.

Objective of the Scheme

The primary investment objective of the scheme is to achieve long-term capital growth through active management of equity and equity-related securities in the services industry. However, it is important to note that there is no guarantee that the investment objective will be achieved.

Fund Category and Type

  • Fund Category: Thematic
  • Type: Open-ended equity scheme focusing on the services theme

Benchmark

  • Primary Benchmark: Nifty Services Sector TRI (Total Return Index)
     This benchmark has been chosen as it best reflects the performance of companies operating within the services domain.

Who Manages the Scheme?

The Axis Services Opportunities Fund will be managed by:

  • Sachin Jain
  • Shreyash Devalkar
  • Krishnaa Chidambaram

Investment Strategy

The fund will follow an active investment strategy, focusing on sectors within the services industry, including:

  • Financial services
  • IT and telecom
  • Power
  • Consumer services
  • Healthcare
  • Oil, gas, and consumables

The fund manager will use a bottom-up stock picking approach, targeting companies with robust business models and strong growth potential within these sectors. The strategy also includes the flexibility to invest up to 20% of assets in companies outside the core services theme and may explore overseas investment opportunities, including ADRs, GDRs, and service-related ETFs.

Conclusion

The Axis Services Opportunities Fund offers an opportunity to participate in India’s growing services-driven economy through a carefully curated portfolio of companies. With a focus on long-term capital growth and strategic asset allocation, the fund aims to tap into structural and emerging opportunities within the services ecosystem.

Ready to watch your savings grow? Try our SIP Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Irregular Toll Collection: NHAI Imposes 2-Year Ban on 14 Agencies, Forfeits ₹100 Crore

In a decisive move to reinforce transparency and accountability in toll operations, the National Highways Authority of India (NHAI) has debarred 14 user fee collection agencies for their involvement in irregular activities at toll plazas. This action underscores NHAI’s zero-tolerance approach towards contract violations and its commitment to efficient highway operations.

Investigation Led by UP Special Task Force

The trigger for this sweeping action was a raid conducted by the Uttar Pradesh Special Task Force (UP STF) at the Atraila Shiv Ghulam Toll Plaza in Mirzapur district. Based on the findings and an FIR lodged thereafter, NHAI promptly initiated an internal review.

Show-cause notices were issued to the involved agencies, requiring them to justify their conduct. However, the responses were deemed unsatisfactory and failed to align with the contractual obligations stipulated by NHAI.

Agencies Debarred and Security Worth ₹100 Crore Forfeited

As a consequence, 14 agencies have been debarred for a period of 2 years. This action is in direct response to their violation of the contract agreement. In addition, performance securities valued at over ₹100 crore have been forfeited and are being encashed due to breach of contract.

Continuity of Toll Operations Ensured

To avoid disruption in toll collection and ensure the continued smooth functioning of toll plazas previously operated by the debarred agencies, NHAI will be appointing new agencies. The defaulting entities will be notified to hand over operations to the newly appointed concessionaires.

Commitment to Transparency and Accountability

This unprecedented move demonstrates NHAI’s focus on upholding the highest standards of integrity in toll operations. The authority has reaffirmed that any contractual lapse will invite strict action, including debarment from future projects and financial penalties.

Conclusion

NHAI’s proactive stance sends a strong message to all stakeholders involved in national highway management—non-compliance and malpractice will not be tolerated under any circumstances.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

TCS on Foreign Remittances: What Changes from April 1 for Education and Travel

The government of India has notified changes to the Tax Collected at Source (TCS) framework under the Liberalised Remittance Scheme (LRS), which will come into effect from April 1, 2025. These updates aim to simplify taxation while ensuring compliance on high-value foreign transactions. Here’s a detailed look at what has changed and how it may impact different types of remittances.

What is Tax Collected at Source (TCS)?

TCS is a mechanism through which tax is collected by sellers or authorised entities (like banks or financial institutions) at the time of transaction. The idea is to ensure advance tax collection on significant transactions such as high-value purchases or overseas transfers. Under the LRS, Indian residents are allowed to remit up to USD 250,000 per financial year for permissible transactions such as travel, education, gifts, or investments abroad.

Revised TCS Exemption Threshold

One of the key changes is the increase in the TCS exemption threshold. Earlier, foreign remittances up to ₹7 lakh in a financial year were exempt from TCS. From April 2025, this limit has been raised to ₹10 lakh. This means any remittances below ₹10 lakh will not attract TCS, offering relief to individuals remitting smaller amounts.

New TCS Rates on Various Categories of Remittances

Let’s examine how the new TCS rates will apply based on the purpose of the remittance:

1. Foreign Travel

  • Up to ₹10 lakh: No TCS will be applicable.
  • Above ₹10 lakh: A reduced 5% TCS will apply.

This adjustment comes as a relief to travellers, especially after the earlier proposed 20% TCS had raised concerns about excessive upfront tax costs.

2. Education Remittances

  • Through Loans from Financial Institutions: No TCS will apply, continuing the earlier exemption.
  • Self-funded Education: A 5% TCS will be applicable for remittances exceeding ₹10 lakh.

The distinction aims to encourage education financing through formal channels while moderating the TCS burden on self-funded students.

3. Medical Expenses

  • Up to ₹10 lakh: No TCS applicable.
  • Above ₹10 lakh: A 5% TCS will be levied.

This move provides relief for those needing to travel abroad for medical treatment by maintaining a higher exemption limit.

4. Investments, Gifts, and Other Remittances

  • A 20% TCS will continue to apply for remittances above ₹10 lakh, if made for:
    • Investing in foreign stocks, mutual funds, or real estate
    • Gifting money to relatives
    • Other personal transactions not classified as education, travel, or medical

This remains unchanged from earlier proposals and targets high-net-worth or discretionary spending.

Abolishment of TCS on the Sale of Goods

In addition to changes in LRS remittances, the government has withdrawn the 0.1% TCS on the sale of goods exceeding ₹50 lakh in a financial year. This change is expected to benefit traders and businesses by:

  • Simplifying tax compliance
  • Improving cash flow
  • Reducing the administrative burden on sellers

Final Thoughts

The updated TCS provisions under the LRS reflect a balanced approach—providing relief in essential areas such as travel, education, and healthcare while maintaining checks on non-essential or high-value foreign expenditures. These changes not only align with evolving global financial behaviours but also reinforce tax transparency and compliance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Penalty of ₹10,000: If These New GST Rules Are Not Followed from April 1, Businesses Should Take Note

Starting April 1, 2025, a significant change under the Goods and Services Tax (GST) regime will come into effect. The government has made it mandatory for businesses to use the Input Service Distributor (ISD) mechanism for the distribution of Input Tax Credit (ITC) across different branches or states.

This change stems from amendments introduced through the Finance Act (No. 1) of 2024, which modified the Central Goods and Services Tax (CGST) Act to enable a more structured and transparent ITC allocation system.

Understanding Input Tax Credit (ITC)

Input Tax Credit (ITC) refers to the tax paid on purchases or expenses that are used in the course of business. It can be claimed as a deduction against the output tax liability. In essence, ITC helps businesses lower their tax burden by offsetting the tax paid on inputs against the tax payable on final products or services.

For example, if a business pays GST on raw materials or consultancy services, that amount can be credited against its GST liability on finished goods or services. However, this system requires strict compliance to prevent misuse and ensure fairness.

What is the Input Service Distributor (ISD) System?

The ISD mechanism allows a company with multiple branches or registrations across India to consolidate invoices for common input services—whether domestic or imported—at a single location (often the headquarters). This location then distributes the eligible ITC to the respective units proportionately.

This model replaces the cross-charge method, which involved directly charging expenses to branches. While the cross-charge method often led to confusion and inconsistencies, the ISD system is designed to offer better clarity, consistency, and accountability.

Key Changes Under the New ISD System

1. ISD Becomes Mandatory

From 1 April 2025, the use of the ISD mechanism is no longer optional. All businesses that receive input services common to multiple locations must use the ISD route to distribute ITC.

2. No ISD, No ITC

If a business fails to use the ISD mechanism, Input Tax Credit cannot be claimed at the recipient locations. This change makes compliance not only important but essential to avoid credit loss.

3. Centralised Invoicing

Businesses must centralise invoices for shared services at a designated ISD-registered location. This will require the realignment of internal accounting and tax compliance processes.

Penalty Provisions for Non-Compliance

The updated GST framework includes strict penalty clauses for incorrect distribution of ITC:

  • Interest Liability: Businesses may be required to pay interest on wrongly allocated ITC.
  • Penalty Amount: A fine of ₹10,000 or the amount of ITC wrongly distributed, whichever is higher, may be imposed for non-compliance.

These provisions highlight the government’s emphasis on accurate and fair tax credit allocation, particularly for large businesses with multi-state operations.

Preparing for the Transition

Businesses must take proactive steps to update their accounting systems, train relevant personnel, and register an ISD location if not already done. Failure to comply may not only lead to loss of credit benefits but could also result in monetary penalties and regulatory complications.

Conclusion 

The introduction of the mandatory ISD mechanism under GST marks a pivotal shift in how businesses manage their input tax credits. By enforcing a centralised and standardised approach, the government aims to enhance transparency and reduce disputes in tax allocation. As the deadline of April 1, 2025 approaches, businesses are advised to closely evaluate their compliance structures to align with the updated regulations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Glenmark Pharmaceuticals Secures USFDA Nod for OTC Olopatadine Hydrochloride Ophthalmic Solution

Glenmark Pharmaceuticals Ltd announced on Thursday, 20 March, that its subsidiary, Glenmark Therapeutics Inc., USA, has received final approval from the US Food & Drug Administration (USFDA) for its Olopatadine Hydrochloride Ophthalmic Solution USP, 0.2% (OTC). This approval allows Glenmark to expand its ophthalmic portfolio in the US market.

USFDA Approval and Market Potential

The newly approved product is bioequivalent to Pataday Once Daily Relief Ophthalmic Solution, 0.2% (OTC), developed by Alcon Laboratories, Inc. With this regulatory clearance, Glenmark Therapeutics Inc., USA, will commence distribution, strengthening its presence in the ophthalmic segment.

As per Nielsen syndicated data for the 52-week period ending 22 February 2025, the Pataday Once Daily Relief Ophthalmic Solution, 0.2% (OTC) market recorded annual sales of approximately $50.7 million. This positions Glenmark well to capitalise on the growing demand for over-the-counter ophthalmic treatments.

Commitment to OTC Ophthalmic Expansion

Marc Kikuchi, President & Business Head of North America at Glenmark, expressed confidence in the company’s expanding portfolio, stating, “We are pleased to continue to grow our OTC ophthalmic range. The addition of Olopatadine Hydrochloride Ophthalmic Solution USP, 0.2% underscores our commitment to meeting market needs and delivering quality over-the-counter solutions to customers.”

Glenmark Share Performance 

As of March 21, 2025, at 10:34 AM, Glenmark Pharma Ltd share price was trading at ₹1,500.00 per share, reflecting a surge of 1.43% from the previous day’s closing price. Over the past month, the stock has surged by 15.31%.

Conclusion

With this approval, Glenmark strengthens its foothold in the OTC ophthalmic space, bringing a cost-effective alternative to the US market. The move aligns with the company’s strategy to enhance accessibility to high-quality medications.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Hindustan Unilever to Buy 14.3% Stake in Plastic Recycler Lucro Plastecycle

Hindustan Unilever Limited (HUL) has decided to acquire a 14.3% stake in Lucro Plastecycle Private Limited, a company specialising in recycling flexible plastics. This step aligns with HUL’s sustainability goals to promote a circular plastic economy and increase the use of recycled flexible packaging.  

Objective and Impact of The Investment 

This investment aims to enhance the availability of recycled materials for flexible plastic packaging, supporting the Government’s goal of achieving zero plastic waste. It also sets a direction for businesses to adopt sustainable packaging and address the issue of hard-to-recycle plastics.  

Executive Perspective 

Rohit Jawa, HUL’s CEO and MD, stated, “This investment is a significant step in building the capabilities in recycling and developing the circular economy model for plastic, which is in line with our firm belief that what is good for India is good for HUL.”

Ujwal Desai, Lucro’s Managing Director, stated,  “At Lucro, we turn the challenge of recycling post-consumer flexible plastics into an opportunity to create high-quality, recycled plastics while driving the circular economy. This investment by HUL paves the way for increasing our recycling capacity, driving large-scale commercial adoption of post-consumer resin and setting a new benchmark for sustainable plastics.”

About Hindustan Unilever Limited

Hindustan Unilever Limited, a subsidiary of Unilever PLC, is India’s largest FMCG company with a legacy dating back to 1931, reaching nearly 90% of Indian households. The company is dedicated to building a better future through sustainable practices.  

Share performance 

As of March 21, 2025, at 10:35 AM, the shares of Hindustan Unilever Limited are trading at ₹2,232.75 per share, reflecting a loss of 0.43% from the previous day’s closing price. Over the past month, the stock has registered a loss of 0.40%. The stock’s 52-week high stands at ₹3,035.00 per share, while its low is ₹2,136.00 per share.

Conclusion

Through this investment, HUL is taking proactive steps toward sustainable packaging solutions, contributing to India’s goal of minimising plastic waste.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India Inc Employees Gain ₹300 Crore in ESOP Shares in Q1 2025

Employees, including key managerial personnel (KMP), from nearly 50 companies have acquired stocks worth ₹284 crore through Employee Stock Ownership Plans (ESOPs) in the first quarter of 2025, according to data compiled from the Bombay Stock Exchange (BSE).

Key Personnel Boost Equity Holdings

Among the prominent buyers, Rajeev Jain, Managing Director of Bajaj Finance, purchased shares worth ₹40.5 crore, increasing his stake in the company to 0.06%. Jain had received a similar volume of shares in FY24 when Bajaj Finance issued him ₹52.22 crore worth of equity shares under its stock option scheme.

Additionally, he received ₹29.2 crore in share-based payments, bringing his total remuneration for FY24 to ₹101.42 crore, as per the company’s annual report.

Significant ESOP Acquisitions by Executives

Other top executives who acquired substantial company stocks include Malay Joshi of Wipro, who purchased shares worth ₹13.5 crore, and Vinay Ahuja, Executive Director at 360 ONE Wealth, with acquisitions valued at ₹9.9 crore.

Nikhil Chopra of JB Chemicals & Pharmaceuticals bought shares worth ₹16.9 crore, while Abhishek Poddar of HDFC AMC acquired ₹6.6 crore in stocks. Sailesh Bhan of Nippon Life India Asset Management and Ruzbeh Irani of Mahindra & Mahindra also made significant purchases, acquiring shares worth ₹6.5 crore and ₹5.0 crore, respectively.

Wipro, which appointed Malay Joshi as CEO of its ‘Americas 1’ Strategic Market Unit in April last year, recorded over ₹21 crore worth of employee stock acquisitions in Q1 2025 alone.

Dominance of IT and Financial Sectors

Companies from the IT and financial sectors dominated the ESOP transactions, with major firms such as Infosys, HCL Technologies, Wipro, LTIMindtree, Mastek, Coforge, and Birlasoft featuring prominently on the list. Despite the increased stock acquisitions by employees, the IT sector has faced significant market challenges.

The Nifty IT Index, which has been the second-worst performing sectoral index after Realty, has dropped 15.4% this year. This is in stark contrast to the Nifty50 index, which has seen a relatively smaller decline of 2% during the same period.

Understanding Employee Stock Ownership Plans (ESOPs)

An Employee Stock Ownership Plan (ESOP) is a benefit scheme that grants employees an ownership stake in their company. These plans can be structured as direct stock grants, profit-sharing arrangements, or bonuses. Employers retain discretion over eligibility and allocation, allowing them to incentivize and reward employees effectively.

The surge in ESOP acquisitions by key executives highlights growing confidence in company performance, despite sectoral market fluctuations. As industries navigate evolving financial landscapes, ESOPs continue to serve as a strategic tool for employee engagement and long-term value creation.

Conclusion

Employees, including key managerial personnel from nearly 50 companies, acquired stocks worth ₹284 crore through ESOPs in Q1 2025, with major purchases from Bajaj Finance’s Rajeev Jain (₹40.5 crore) and Wipro’s Malay Joshi (₹13.5 crore).

IT and financial firms led the acquisitions despite market challenges, highlighting continued confidence in company performance and ESOPs as a strategic incentive tool.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

What is the timeline for the ICICI Securities Delisting and Merger Process?

ICICI Securities Ltd. will be delisted as part of a merger process with ICICI Bank, making it a wholly-owned subsidiary of the bank. The delisting will follow a set timeline, with specific dates for suspension, trading cessation, and share conversion.

Trading Suspension and Delisting Date

The equity shares of ICICI Securities will be suspended from trading after market hours on March 21, 2025. The official delisting date, when trading will fully cease, is set for March 24, 2025. After this, ICICI Securities will no longer be available for independent trading on stock exchanges.

Swap Ratio 

ICICI Bank will issue shares to eligible ICICI Securities shareholders based on a 67:100 swap ratio. This means that shareholders holding 100 shares of ICICI Securities will receive 67 shares of ICICI Bank in exchange. The record date for this conversion is March 24, 2025. Only shareholders holding ICICI Securities stock as of this date will be eligible for the exchange.

Regulatory Clearance

The delisting was approved by shareholders, with 93.82% of private shareholders and 71.88% of public shareholders voting in favor. However, some minority shareholders opposed the move, claiming the process was unfairly structured in favor of ICICI Bank. The matter was taken to the National Company Law Appellate Tribunal (NCLAT), where the petition was dismissed. 

The tribunal ruled that the delisting and swap ratio met legal requirements, allowing the process to proceed.

Stock Market Performance

As of March 20, 2025, at 2:33 PM, ICICI Securities Shares are trading at ₹882.95, up ₹5.90 (0.67%) for the day. Over the past six months, the stock has declined by 1.25%, while it has gained 21.95% over the past year. The company’s market capitalization is ₹27,000 crore. The stock has also gained 25% from its 52-week low in June 2024.

Conclusion 

Following the record date, ICICI Securities shareholders will receive their ICICI Bank shares as per the swap ratio. Market participants will monitor the integration process and its impact on ICICI Bank’s financials in the coming months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

How Will the Merger Impact ICICI Securities’ Existing Clients and Services?

ICICI Bank’s decision to merge with ICICI Securities marks a significant shift in the structure of one of India’s largest private-sector banks. This merger will reunite the 2 entities, which had separated about 8 years ago as part of ICICI Bank’s strategy to strengthen its capital base during challenging economic times. In this blog, we will explore how the merger will impact ICICI Securities’ existing clients and the services they currently enjoy.

Background: The Merger Between ICICI Bank and ICICI Securities

ICICI Bank had listed its subsidiaries, including ICICI Securities, to address increasing non-performing loans and to shore up its own capital base. The listing, which occurred in April 2018, was an attempt to navigate the deteriorating macroeconomic environment and avoid any future capital infusion requirements. Now, after 8 years, ICICI Bank has decided to reabsorb ICICI Securities, offering a 67:100 share swap ratio to existing shareholders. For every 100 shares of ICICI Securities, shareholders will receive 100 shares of ICICI Bank, effectively making the subsidiary a part of the parent once more.

Impact on ICICI Securities’ Existing Clients

The merger is expected to bring numerous changes, both positive and subtle, for existing clients of ICICI Securities. Below are some key areas where clients might feel the difference:

Strengthening Customer Engagement and Technological Advancements

With the merger, ICICI Bank and ICICI Securities will likely benefit from synergies in customer sourcing and acquisition. As both entities combine their resources, they can leverage their strengths in technology and customer engagement to improve client offerings. This integration could lead to an enhanced and more seamless experience for clients, as they will have access to services from both entities without the need to navigate separate platforms.

Access to a Broader Range of Financial Services

One of the most notable advantages for ICICI Securities’ clients is the potential access to a broader spectrum of financial products and services. By merging with ICICI Bank, clients will now be able to access not only wealth management and trading services but also a full range of banking products such as savings accounts, loans, and investment solutions. This consolidation could create a one-stop financial services hub for clients, offering them a greater array of solutions within the same ecosystem.

Impact on ICICI Securities’ Services

While the merger will have implications for customers, it will also bring about changes in how ICICI Securities operates and delivers its services.

Consolidated Platform

One of the more significant shifts could be the creation of a consolidated platform for services. This consolidation will streamline operations, making it easier for clients to access both banking and securities services from a single, unified system. Whether it’s for trading, investments, or loans, clients could benefit from smoother, integrated services that are easier to manage.

Expansion of Reach and Network

As part of the merger, ICICI Securities’ services will be incorporated into ICICI Bank’s expansive network, which includes branches, ATMs, and digital platforms. This could potentially expand the reach of ICICI Securities’ services, enabling more people across India to access investment products and services. The broader network will also likely enhance customer support and increase accessibility for clients in remote or underserved areas.

Spur Innovation for New Products

The merger could also spur innovation within ICICI Securities. With the backing of ICICI Bank, the combined entity will have more resources to develop new financial products and services. Clients may see the introduction of cutting-edge investment tools, wealth management solutions, and enhanced mobile trading features. The merger opens up opportunities for both companies to innovate in ways that better meet the evolving needs of their customers.

Conclusion

The merger between ICICI Bank and ICICI Securities is expected to bring about a host of benefits for both companies and their clients. Existing clients of ICICI Securities are likely to see improvements in the range of services offered, greater accessibility, and potential innovations in financial products. While the immediate changes may focus on operational integration, the long-term benefits for clients could be substantial, offering them a more streamlined, comprehensive, and customer-focused financial experience.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Avenue Supermarts Expands E-Commerce Presence with ₹175 Crore Infusion in DMart Ready

Avenue Supermarts Limited (DMart), a prominent name in the Indian retail sector, has announced an additional investment in its subsidiary, Avenue E-Commerce Limited (AEL). The company has invested ₹174.99 crore by subscribing to 4.67 crore equity shares of AEL at an issue price of ₹37.41 per share. This investment aims to strengthen AEL’s operational, working capital, and capital expenditure (capex) requirements.

The share price of Avenue Supermarts was trading with gains of 0.12% at ₹3,850 as of 11:02 AM on March 20, 2025. 

Key Highlights of the Investment

  • Transaction Details: Avenue Supermarts Limited has acquired 4,67,78,000 equity shares of AEL at ₹10 per share with a premium of ₹27.41 per share.
  • Nature of Transaction: The transaction is classified as a related-party transaction but has been executed on an arm’s length basis.
  • Impact on Shareholding: Prior to this transaction, Avenue Supermarts held a 99.71% stake in AEL. Post-acquisition, its stake has marginally increased to 99.74%.
  • Funding Mode: The acquisition was completed through cash consideration.
  • Regulatory Requirements: No governmental or regulatory approvals were required for this transaction.

About Avenue E-Commerce Limited (AEL)

Avenue E-Commerce Limited, incorporated in 2014, operates under the brand name ‘DMart Ready’ and is engaged in multi-channel grocery retailing. The company has witnessed consistent growth in turnover over the last three financial years:

  • FY 2023-24: ₹2,899.20 crore
  • FY 2022-23: ₹2,202.03 crore
  • FY 2021-22: ₹1,667.21 crore

Strategic Implications of the Investment

This capital infusion is expected to support AEL in further enhancing its operations, optimising supply chains, and expanding its digital presence in the Indian grocery retail market. As the e-commerce sector continues to grow, investments in technology, logistics, and customer experience are likely to play a crucial role in strengthening the company’s competitive edge.

Conclusion

With this investment, Avenue Supermarts continues its commitment to strengthening its e-commerce arm and adapting to the evolving retail landscape. While DMart has traditionally been known for its brick-and-mortar presence, this move reaffirms its focus on digital expansion and sustained growth in the online grocery segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.