Cantabil raises funds for expansion

Cantabil Retail is all set to expand its presence pan-India. To achieve the aim, the company is planning to raise funds (105 cr) through an issue of initial public offer (IPO). It recently received SEBI's observations on the DRHP (draft red herring prospectus).

The company has plans that it would use Rs 25 crore of the IPO proceeds to open around 561 store outlets by the end of FY’11. Around Rs 30 crore would be spend on working capital and Rs 20 crore for repaying debt.

The company, currently, has 414 retail outlets predominantly in northern and western regions.

Of the 561 new stores being planned, 150 will be company-owned and the rest to be franchised.