Vishal Retail, which focuses on the mid-market space through its flagship Vishal Megamart brand of hypermarkets, is now eying the premium retail space through apparels and accessories.
Will sell apparel and accessories; plans to raise Rs 300-500 crore
KOLKATA: Vishal Retail, which focuses on the mid-market space through its flagship Vishal Megamart brand of hypermarkets, is now eying the premium retail space through apparels and accessories.
The company, which mopped up Rs 110 crore through an IPO earlier this year, is now also targeting a second round of funding, whereby it is looking to mop up Rs 300-500 crore.
Ritesh Rathi, chief operating officer (COO), Vishal Retail, confirmed this but did not reveal details.
Market sources said the new premium format will see dedicated apparel stores that will be a mix and match of private labels and outsourced products. According to Rathi, “The entire project is under study.”
The company is undecided on the route it will take to garner additional funds. However, Rathi said it could either be a follow-on offer or a qualified institutional placement (QIP).
The current debt-equity ratio of the company is at 1.8:1.
The funds raised will be injected into expansion plans.
The current retail space of about 1.7 million sq ft will be increased to 2.2 million sq ft by the end of this fiscal, Rathi said.
There are about 70 hypermarkets at present, whose average size spans 10,000 sq ft. Meanwhile, the company is exploring further options in its speciality apparel stores — Vishal Fashion Mart — as well as its convenios.
The first speciality store, spread across 2,200 sq feet, has been launched in Delhi as a pilot project, while three convenios have also been opened in the capital.
The company registered a turnover of Rs 600 crore in 2006-07. The target for 2007-08 is Rs 1,200 crore.
m_madhumita@dnaindia.net
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