Vishal Retail pegs share price range at Rs230-270 for IPO

Vishal Retail pegs share price range at Rs230-270 for IPO
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First Published: Thu, Jun 07 2007. 01 07 AM IST
Updated: Thu, Jun 07 2007. 01 07 AM IST
New Delhi: Vishal Retail Ltd will price its shares between Rs230 and Rs270 a share and hopes to raise as much as Rs110 crore in an initial public offering (IPO) to fund its expansion plans to tap on the unprecedented growth of modern retailing in India.
Officials at the company that operates the Vishal Mega Mart stores, said the Registrar of Companies cleared its red herring prospectus on Tuesday and the company will list its stock on the Bombay Stock Exchange and the National Stock Exchange in July. The issue will open on 11 June and close on 13 June.
That will coincide with India’s biggest share sale, that of DLF Ltd, the real estate developer that is issuing India’s largest IPO to date.
The total number of Vishal shares sold will be determined by the price that investors pay, provided the company does not raise more than Rs110 crore.
Started as a single store in Kolkata in 1986, Vishal currently operates a chain of more than 50 supermarkets to hypermarkets spanning more than 1.3 million sq. ft of shopping space in 39 Indian cities, from Jammu to Jaipur and from Gurgaon to Guwahati. The company plans to add 22 new stores in coming years with the money raised from the listing.
Once listed, Vishal will join a handful of Indian listed retailers including Pantaloon Retail (India) Ltd, Shoppers’ Stop Ltd, Piramyd Retail Ltd and Trent Ltd, among others.
Vishal has already got investments from the Munjals of the Hero Group, the Burmans of Dabur India Ltd and HDFC Ltd, among others.
The company doesn’t have plans for any private placement prior to the IPO.
Organized retailing currently accounts for just 3% of India’s overall $300 billion annual retail market.
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First Published: Thu, Jun 07 2007. 01 07 AM IST
More Topics: Money Matters | IPOs |