Shoppers' Stop plans IPO to allow exit route for VCs

By SiliconIndia   |   Thursday, 20 February 2003, 08:00 Hrs
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KOLKATA: Shoppers' Stop Limited, India's largest retailing chain, is planning to go public within 18 to 24 months to allow exit route for its venture capitalists, its CEO and managing director, B S Nagesh said.

Nagesh told reporters on Wednesday that ICICI, IL&FS and Zodiac Clothing had provided venture capital for the company and their combined stake-holding in Shoppers' Stop was 18 per cent, while balance 82 per cent is held by C L Raheja Group.

He said: "an IPO is important to provide liquidity to the investors as well as providing exit route for the three venture capitalists".

The company had also decided to offer five per cent equity to the employees, which will dilute Raheja's shareholding from 82 per cent.

Regarding future plans of the company, Nagesh said by 2007, there would be a total of 35 retail Shoppers' Stop stores across the country from the present number of 11.

Presently, the company has retail stores in Bangalore, Chennai, Hyderabad, Pune, Mumbai, Delhi and Jaipur.

The company, which will open its first retail store in Kolkata next month, plans to add three more in the city. According to him, Kolkata had been the first city in the country to develop the concept of modern retailing followed by other metros like Delhi, Mumbai and Bangalore.

The first such store will have a retailing space of 40,000 square feet on the built-up area of 54,000 square feet.

He said that the store will have 85 per cent branded products of all makes, besides all sporting utilities.

Asked about the turnover of the company, he said that it will be around the region of Rs 1000 crore by 2007 and the present level was Rs 300 crore.

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