The Hindu Business Line : Vishal Retail plans Rs 110-cr public issue

Mumbai June 7 Vishal Retail proposes to enter the capital market with an initial public offering (IPO) of equity shares aggregating Rs 110 crore. The issue opens on June 11 and closes on June 13. The price band for the 100 per cent book built issue has been fixed between Rs 230 - Rs 270 per equity share of Rs 10 each.

The company proposes to invest the proceeds of the issue to establish new retail stores. Of the total 32 stores to be set up this year, the IPO will fund for the establishment of 22 stores. The company will deploy Rs 104.15 crore of the net issue proceeds for setting up the stores in the current year. The setting up of the remaining stores will be funded through internal accruals.

The company will lease the real estate space for the stores and not buy the property.

The company reported total income at Rs 771.15 crore for the year ended March 2007 and net profit at Rs 24.98 crore.

The company currently operates 50 retail stores including two stores operated by franchisees located in 18 states across the country. It sells garments, apparels and FMCG products. It focuses on tier II and tier III cities and follows the value retail strategy.

Enam Financial Consultants Pvt. Ltd is the book running lead manager for the issue and Intime Spectrum registry Ltd. is the registrar to the issue.