With more than Rs 450 crore almost in its wallet, Provogue India Ltd has chalked out aggressive expansion plans for all its verticals.
The company, Friday, said that it would raise Rs 314 crore through the preferential allotment of 2.85 million equity shares at a price of Rs 1,100 per share. The money will be utilised for expansion plans such as setting up new stores, introducing foreign brands and acquisitions. The shareholders’ approval for the preferential issue will be sought through an Extraordinary General Meeting of the company, which will be held on May 9, 2008.
Akhil Chaturvedi, director, Provogue India, in an exclusive revelation to Indiaretailing confirmed, “The company is in process of not only expanding, but also consolidating all its business verticals. For this, a considerable amount of capital is being raised. Provogue, the fashion and lifestyle brand, will see around 30 new openings by next year. The Provogue Mega Store format has been a successful venture, so the new openings will include 8-10 stores here as well.”
Discussing plans for other verticals, Nikhil Chaturvedi, managing director, Provogue India, said, “The investments are going toward expansions. The Promart store concept has seen considerable growth, and about six new Promart stores are lined up for this financial year. Secondly, we are also in talks with some prominent international brands and will introduce some of them within six months.”
The brands will have their own retail network and be sold through standalone stores, confirmed Chaturvedi. However, he did not name any of the brands that are being considered for India launch.
A chunk of the raised capital will also be shared with the Prozone-Liberty JV company for the company’s ongoing real estate projects. “Around 12 centres are planned, out of which four are at an advanced stage. Work on the rest will begin soon,” Chaturvedi said.
– Ranjan Kaplish