Vishal Retail to set up 22 new stores in FY08

Mumbai, Jun 7 (UNI) New Delhi-based Vishal Retail, an emerging player in value retail segment, will launch 22 retail stores in the next fiscal for which the company is raising Rs 110 crore from equities.

The initial public offer (IPO), slated at a price band of Rs 230-270, is scheduled to hit markets by June 11. The company plans to shell out nearly Rs 104 crore for the expansions. The IPO will close on June 13.

The issue will be held through cent per cent book building process wherein nearly 30 per cent has been allotted to individual retail bidders.

Among the proposed 22 stores, 18 will be in tier 3 cities, three in tier 1 cities including Mumbai and one in tier 2 city (Pune).

The company presently runs 50 retail stores of which two are managed by franchisees.

''Starting in the apparels segment in 1986, we have now expanded operations to non-apparels and FMCG segments and is constantly looking for further business expansions in coming years,'' said Vishal Chief Operating Officer Ritesh Rathi.

The company is importing toys, watches, toiletris and grocery items from China.

The Profit After Tax (PAT) of the company stood at Rs 25 crore in FY07 compared to Rs 12 crore in the previous fiscal.

The company has an apprael manufacturing plant in Gurgaon, Haryana and has set up seven regional distribution centers in north India.

UNI