The K Raheja Group-promoted Shoppers’ Stop is likely to issue its IPO in the market by April-June, this year.
BS Nagesh, managing director, Shoppers’ Stop, in a statement made to Newswire18, said, “There is no question of delaying our rights issue. It will happen in the next quarter. All our large investors who along with the promoters hold close to 97 per cent of the equity have expressed confidence in the proposed issue.”
However, a company spokesperson denied sharing details with Indiaretailing saying, “We do not have any idea of the source of the news.”
The report further read that the company is planning to increase its stores to cater to the mass segment. “Our financial health particularly on the margin front would improve and stabilise from 2010-11 onwards when the number of our flagship Shoppers’ Stop stores will reach 50 and the total area across all format stores will double to 3.2 million square feet from 1.6 million square feet now,” said Nagesh.
By 2010-11, the company plans to have 100 stores each of Crossword, Mothercare and cafes such as Brio and Desi Cafe. At present, it has 28 Crossword and 19 Mothercare stores, and 24 Brio and Desi Cafes.
However, Nagesh brushed aside rumours of the promoters considering selling off the company following reports of AV Birla Group eyeing the company.
Earlier, Indiaretailing had reported about AV Birla Group denying taking over Shoppers’ Stop.