Vishal Retail to raise Rs 100 cr through QIP; Plans 25 stores this year
The Delhi-based retail company Vishal Retail plans to raise up to Rs 250 crore through the qualified institutional placement (QIP) of its shares.
October 09, 2009 | comments ( 2 ) |
The Delhi-based retail company Vishal Retail plans to raise up to Rs 250 crore through the qualified institutional placement (QIP) of its shares. “Though we have the shareholders nod to rise up to Rs 250 crore, we might wish to raise only Rs 100 crore through the QIP route,” Ambeek Khemka, group president Vishal Retail told. The money raised through QIP would be utilised for augmenting the company’s inventory levels and for expansion plans. The retail company is also in the process of restructuring and rolling over of its Rs 730 crore debt. The company has already initiated the process of corporate debt restructuring and is exploring various options to reduce its debt burden. “We are already in talks with our lender banks to reduce the interest rates by half from the 11.5 to 12 per cent paid by the company on its debt,” he explained. Khemka added that the company also wants to roll over short-term debt with long-term debt. In fact, the company has already managed to successfully roll over around Rs 250 crore of its short-term debt with long-term debt at single digit interest rates. “We are confident of the remaining debt to be restructured very soon.” At present, the company owns and runs 174 stores and plans to add 25 more stores by the end of this financial year.
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