In defiance of a market crisis, wherein many majors are withdrawing their initial public offers, Chennai-based retailer Subhiksha is determined to float the Rs 500-crore IPO in the first quarter of FY 2008-09.
Confirming the news to Indiaretailing, R Subramanian, founder and CEO, Subhiksha, said, “We have expansions lined up and shall definitely go public in the first quarter of this financial year.”
Asked if the company will reconsider its plans because of the present market scene, he said: “By the time we float the IPO, we hope the market will be better. We are confident that the retail investor will come forward and, to be sure, we expect good results.”
The company plans to open 2,000 stores by the end of FY09, and will require around Rs 1,000 crore to invest for the same. While it expects to pull in Rs 500 crore through the IPO, the remaining investment would be met by the company, say industry sources.
It is being assumed that ICICI Prudential Assessment Management Company has also evinced interest in investing in Subhiksha’s pre-IPO.
– Ranjan Kaplish