Vishal Retail Ltd has completed the slump sale of its wholesale and franchise venture to TPG Wholesale, the Indian subsidiary of TPG VW Ltd, and its retail undertaking to Airplaza Retail (a company owned by the Shriram group).

The company has been under the corporate debt restructuring (CDR) process since November 2009.

TPG also announced that it will invest Rs 200 crore in TPG Wholesale to fund the turnaround of Vishal's business and future growth.

Mr Ram Chandra Agarwal, Promoter and Managing Director, Vishal Retail Ltd said, “We have ambitious plans lined up for our next venture. The details are being worked out and we shall share the same with you as soon as the blueprint is ready. We are confident of a formidable comeback in no time.”

“These transactions have been approved by the board and shareholders of Vishal Retail and accepted by all of the bank creditors of Vishal Retail,” TPG said in a statement. TPG Wholesale will be the franchisor to Airplaza Retail and the existing franchisee partners of the business.

The Vishal Megamart branded retail operations will comprise over 150 stores throughout the country, mostly in tier-II & III towns and cities operated by both AirPlaza and over 20 other franchise partners.

Last year, Vishal Retail had said it would sell its retail trading business to the Shriram Group and the wholesale division to the private equity firm TPG for a combined value of Rs 100 crore.

Post announcement, Vishal Retail's scrip shot up by 19.97 per cent, up from the previous close of Rs 37.55 per share in afternoon trade on the BSE.

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