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PCH Retail (Punjab Crockery House) Ltd, a Hyderabad-based diversified group with a chain of retail stores, has filed a Draft Red Herring Prospectus (DRHP) with the market regulator SEBI to tap the capital market.
The company proposes to come up with a public float of 1,68,27,000 equity shares of face value of Rs 10 each at a price to be decided.
This would mean diluting the company's promoters' stake by about 38.71 per cent.
The company sells consumer durables and electronic products and mobile phones through a chain of multi-brand retail outlets in Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra. It has over 110 MBOs (multi-brand outlets) with a spread of 6.21 lakh sq.ft.
The promoters, Mr Balvinder Singh and Ms Baljit Kaur, currently hold over 68 per cent stake in the company.
The retail chain proposes to expand its network by adding 100 new MBOs spread across nearly 9 lakh sq ft of retail space by entering into the tier-II and III cities across the country.
Revenues
According to DRHP filings, the company closed the first nine months of FY 2011 up to December with total revenues of Rs 741 crore and a net profit of Rs 12 crore.
Expansion
The expansion project to set up a new chain of stores is estimated to be Rs 270 crore. SBI has extended it a Rs 30-crore term loan.
The IPO proceeds would also help retire some of its debt.
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