(1 April 2009 9:00 pm)

MUMBAI: The MobileStore (TMS), Essar Group’s telecom retail arm, has announced that it is planning to raise up to $75 million through private equity placement to fund its expansion plans.

TMS, which at present has around 1400 stores across India, is on an expansion spree and intends to increase the number of outlets to 1800 within the current fiscal and to take it to 2,500 by the next two years.

"We will soon start discussion with private equity players to raise upto $75 million and hope to seal the deal in three to four months," PTI quoted The Mobilestore CEO and director Rajiv Agarwal as saying.

The company is open for domestic as well as international PE 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.

With around 4500 employees across the country in these stores, TMS outlets sell mobiles, handset accessories, mobile connections and recharges, mobile bill payments, value added services, handset repairs and exchange, music and gaming devices and also DTH packages.