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The proceeds of the issue will be utilised to finance expansion plans, including setting up of 11 more stores.
MUMBAI: Shoppers' Stop Ltd. (SSL), a leading retail chain, is entering the capital market with an initial public offer of 69.46 lakh equity shares of Rs. 10 each. The company has fixed a price band of Rs. 210-250. The issue opens on April 27 and closes on May 3.
The company will use the proceeds of the issue to finance its expansion plans, including setting up of 11 more stores over the next two years in Bangalore, Delhi, Noida, Mumbai, Pune and Hyderabad. A part of the proceeds will be used for renovation and expansion of existing stores. The cost of setting up the 11 stores is Rs. 110-120 crores and the renovation of three existing stores around Rs. 15 crores.
SSL is a pioneer in setting up nation-wide chain of large format department stores in India and has been promoted by K. Raheja Corp Group, one of the leading groups in the business of real estate development and hotels in India. The retail chain has grown from a single store in Mumbai with an area of 2,800 sq. ft to 16 locations across India occupying an aggregate area of 750,000 sq. ft.
The promoter group shareholding will come down to 67 per cent post-issue from almost 80 per cent. In 2003-04, SSL's gross retail sales were Rs. 395.30 crores with the operating profit at Rs. 24.60 crores and net profit Rs. 12 crores.
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