Essar Group's telecom retail arm, The Mobilestore, today said it plans to raise $75 million through private equity placement for its expansion.
"We will soon start discussion with private equity players to raise up to $75 million and hope to seal the deal in three to four months," The Mobilestore Chief Executive Officer Rajiv Agarwal told PTI.
Agarwal said that the company was open to raising funds both from domestic and overseas private equity players within the prescribed government guidelines.
"The fund will be used to enhance our presence and other expansion plans," Agarwal said, adding that the percentage of stake dilution would depend upon the valuation of the company.
The Mobilestore has around 1,400 stores owned and operated by the company. These outlets sell mobile phones, accessories, mobile connections & recharges and provide services like bill payments, mobile repairs and exchange.
They also sell music and gaming devices and DTH packages.
Agarwal said that the company intends to increase the number of outlets to 1,800 within the current fiscal and to take it to 2,500 by the next two years.
