Subhiksha To Hit IPO Stands In 2008

While big daddies like Wal-Mart and Reliance are still taking their own sweet time to roll out their retail operations existing players like Subhiksha want to make most of this time window.Subiksha is all set to hit the capital markets early next year to fuel growth.

Subiksha wants to use funds to add up stores to 2,500 in next 18 months. Even though it is tightlipped on what amount will they need to raise from the market, industry sources say it will need atleast Rs 400-500 crore. To expand so fast, Subhiksha knows that it cannot take on deep pocketed players like Reliance and Wal-Mart by putting up its own supply chain and is scouting for partners to bolster its backend. Be it margin pressure or escalating cost, Retail in India is booming nonetheless, demand is increasing multifold drawing in new players like Subhiksha to the capital markets to raise funds and get on with its expansion plans.