Avenue Supermarts Ltd., operator of the DMart supermarket chain, plans to raise up to 10 billion rupees ($105 million) through a domestic bond offering, marking its largest-ever corporate debt issuance, according to people familiar with the matter.

The Mumbai-based retailer has approached bankers to gauge interest for the planned bond sale and is finalizing key details such as the tenor and coupon, the sources said, requesting anonymity as the information is private.

Proceeds from the bond issuance will be used for capital expenditure, primarily focused on expanding the company's footprint by opening new DMart stores across India.

The planned sale underscores a broader trend of increasing corporate bond activity in India, as companies seek to capitalize on favorable market conditions to fund growth initiatives.