Mumbai, Mar 24: The Board of Directors of S Kumars Nationwide Limited (SKNL) today announced May 2 as the record date of its demerged business arm Brandhouse Retails Limited (BHRL) and informed the stock exchanges accordingly. The record date determines the shareholders of SKNL who 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.
This is pursuant to the scheme of demerger approved earlier by the Bombay High Court. The order was filed with Registrar of Companies, Mumbai, on March 3 and became effective from the same date. ''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 and enjoy high PE multiples,'' SKNL Vice Chairman and Managing Director Nitin Kasliwal said in a press release here today.
SKNL demerged its retail business into BHRL to unlock the value proposition for the investors and focus on the expansion of its retail arm.
The Indian retail market is the fifth largest retail destination globally, and is estimated to grow from the USD 330 billion in 2007 to USD 427 billion by 2010 and USD 637 billion by 2015.