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.

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