Swedish furniture maker IKEA has infused ₹600 crore in its India entity. This will be the second infusion in 2022. The first infusion was to the tune of ₹850 crore, to fund the company’s omnichannel expansion strategy.
Ingka Pro Holding BV and Ingka Holding Overseas BV, IKEA’s parent company and its controlled entities have bought 60 crore shares in Ikea India Private Limited for ₹10 each, financial data accessed by business intelligence platform Tofler showed.
The capital infusion comes when IKEA is expanding its stores in India. IKEA rolled out its second city centre format in Mumbai in July. The 72,000-sq ft store located in R City Mall is IKEA’s first store in a mall in India. Before that, IKEA had opened its first smaller store in the range of 80,000 sq ft in Worli, Mumbai.
In June, IKEA, the world’s leading Swedish home furnishings retailer, opened its maiden store in Bengaluru, located at Nagasandra and its third big box outlet in India after Hyderabad and Mumbai.
Plans for 2 new malls
IKEA also has plans for two malls that are anchored by its stores — in Gurugram and Noida. The furniture brand recently got its first offline store in Bengaluru.
Ingka Group has also announced that it would invest ₹7,500 crore to develop the NCR two Ingka Centres, large retail destinations that would house other brands and retailers apart from IKEA.
Its net loss increased to ₹807.5 crore in the financial year ended March 2021 from ₹720.7 crore in the previous year.
In a glance
- Amount raised: ₹600 crore
- Investor: Ingka Pro Holding BV, The Netherlands and Ingka Holding Overseas BV, The Netherlands. The significant share going to Ingka Holding Overseas BV (₹599 crore)
- Share type: Equity shares
- Nominal Amount Per Share: ₹10
- No. of shares: 60 crore