New Delhi-based value retailer V-Mart has fixed its price band at Rs 195 to Rs 215 an equity share for its initial public offering. The offer will be for 44.96 lakh of equity shares of face value of Rs 10 each. The issue opens for subscription on February 1 and closes on February 5.
The book building for anchor investors shall begin on January 31.
V-Mart, promoted by Lalit Agarwal, plans to raise about Rs 127 crore through the IPO based on the median price band. Of this, the company has already raised Rs 26.25 crore through a pre-IPO placement of 1,250,000 equity shares of the face value of Rs 10 each at a price of Rs 210 per equity.
“After the IPO, our net worth would stand at about Rs 190 crore which will also give us leverage to raise debt for further expansion,” said Deepak Sharma, CFO, V-Mart Retail.
The company, which follows a strategy of opening standalone stores only in small Indian towns through a cluster model, plans to scale up its store count to 120 by 2015. Currently it operates 62 stores across 53 towns.
“We want to be present at the right place with right products. We don’t want to tie-up with malls as we want shoppers and not just visitors,” said Lalit Agarwal, Chairman, V-Mart.
The company’s total income in FY12 was pegged at Rs 280 crore in FY 12 with a PAT of Rs 11 crore.
Anand Rathi Advisors Limited is the sole Book Running Lead Manager (BRLM) to the Issue and Karvy Computershare Private Limited is the Registrar to the Issue.