Saturday, June 28, 2008

SRS Group Plans To Raise Rs 500 Crore Through IPO - June 28, 2008

CHANDIGARH: Fardiabad based SRS Group is expecting to raise Rs 500 crore through an Initial Public Offer, slated to be launched by the end of this fiscal, to partly fund its Rs 1000 crore expansion programme.

"We are hoping to mobilise Rs 500 crore from our public issue which would be launched by the end of this financial year," SRS Group Chairman Anil Jindal said, adding that the remaining Rs 500 crore would be raised through other means.

The company has not decided on how much prompters' stake would be diluted for the proposed public issue.

"Things are at the preliminary stage and at this moment I cannot say how much stake would be diluted," he said.
The company is also looking at other options to fund the project which include internal accruals, private equity and debt.

"The balance Rs 500 crore out of Rs 1000 crore is expected to be raised from internal accruals, private equity placement and bank loans," he said.

The company had announced to invest Rs 1000 crore in next three years on retail, entertainment, food and beverage segment.

The company intends to increase the number of its retail outlets, branded as 'Value Bazaar' to 100 by the end of current fiscal. Besides, it has also proposed to increase the strength of SRS fashion wear and SRS jewels to 25 and 10 respectively by 2008.

By the end of this fiscal, the company is looking to touch turnover of Rs 1000 crore from Rs 700 crore in 2007-08, he said.

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