The shareholders of SKNL will be entitled to shares in BHRL. The shares allotted will be in the ratio of one share for every five shares held in SKNL.
“The equity shares in BHRL being allotted to the shareholders of SKNL are free of cost, and have significant value-addition proposition considering the fact that retail companies operate in high-growth segments,” said Nitin Kasliwal, vice chairman and managing director, SKNL.
The company currently operates 400 retail outlets across India and expects to grow its retail network to about 1,200 exclusive brand outlets (EBOs) by 2010.
SKNL runs company-owned and franchisee stores for various brands including Reid & Taylor, Carmichael House, and Belmonte. It also operates exclusive retail outlets for international brands including Dunhill, ESCADA and Stephens Brothers. The company expects revenues of Rs 10 billion by 2010.