The Hindu Business Line : Shoppers' Stop IPO in 3 months

The retail chain has appointed JM Morgan, Kotak Mahindra and Enam Securities to manage its IPO, which is expected to be floated in three months time, Mr B.S. Nagesh, Managing Director & CEO, Shoppers' Stop Ltd, told Business Line on Wednesday.

Speaking on the sidelines of the KSA Retail Summit and the Images Forum, Mr Nagesh said that since the issue would go through the book-building route, a minimum of Rs 100 crore or more would be raised. However, Mr Nagesh said that the exact size of the issue and how much of the promoters' stake will be diluted have not been finalised.

Shoppers' Stop currently has 13 stores across the country and the plan is to open 22 to 23 stores in the next two-three years to take its outlets to 35. By that time, Mr Nagesh said, Shoppers' Stop would be a Rs 1,000-crore company.

Last year, the company achieved sales of Rs 300 crore and it expects to finish this fiscal at Rs 400 crore. The investment in each store would be in the region of Rs 10 crore.

The equity base of the company is Rs 26 crore. Of this, 82 per cent is owned by the Raheja Group, with the remaining equity held by ICICI Ventures, Infrastructure Leasing & Financial Services and Zodiac Clothing. These venture capitalists had invested in the retail chain in year 2000.

Apart from facilitating expansion and proving liquidity to investors, the IPO will allow an exit route for the retail chain's venture capitalists.

The IPO by Shoppers Stop will be the first IPO to be floated by an independent Indian retail chain.

Mr Nagesh added that the retail chain's in-store brands now accounted for over 18 per cent of its overall sales and by the end of three years, it would go up to 25 per cent of sales.

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Shoppers' Stop IPO in 3 months