V-Mart Retail Limited Initial Public Offer opens on February 1st 2013

 Price Band fixed at Rs. 195 to Rs. 215 per Equity Share

Online PR News – 30-January-2013 – Hyderabad – MUMBAI, January 28th, 2013: V-Mart Retail Limited (“V-Mart” / "Company"), is proposing a public issue of 4,496,000 equity shares of face value of Rs. 10 each (“EquityShares”) for cash at a price of Rs. [—] per Equity Share including a share premium of Rs. [—] per Equity Share, aggregating up to Rs. [—]Million (the “Issue”) comprising of a fresh issue of 2,761,000 Equity Shares by the Company (the “Fresh Issue”) and an offer for sale of 1,735, 000 equity shares by Naman Finance And Investment Private Limited. The Issue will constitute 25.04% of the post issue paid-up capital of the Company.

The Company has decided a price band of Rs 195 to Rs 215 per Equity Share of the face value of Rs 10 each. The Issue will open for subscription on Friday, February 1, 2013 and will close on Tuesday, February 5, 2013. The Company and the Selling Shareholder in consultation with the BRLM may consider participation by Anchor Investors. The Anchor Investor Bid/Issue Period shall be one day prior to the Bid/Issue Opening Date i.e January 31, 2013.

The Company, is one of the pioneers in setting up stores across various small Indian towns and cities including Sultanpur, Ujjain, Motihari (Source: Indian Retail Industry 2012 – CARE Research). V-Mart primarily operate in Tier-II and Tier-III cities, with a chain of “value retail” departmental stores offering apparels, general merchandise and kirana, catering to the entire family. Based in New Delhi, the Company’s operations are spread across northern, western and eastern parts of India.

The Company currently own and operate 62 stores spread across 53 cities and 10 states and union territories, with a total area of 5.06 lac Sq. Ft. In October, 2003 the Company opened its first store by the name of “V-Mart” at Ahmedabad, Gujarat. The company’s stores are located in New Delhi, Gujarat, Uttar Pradesh, Bihar, Punjab, Chandigarh, Haryana, Jammu and Kashmir, Rajasthan and Madhya Pradesh. The average size of the store is approximately 8,000 Sq. Ft.
The Company has established stores in Metro, Tier-I, Tier-II and Tier-III cities which are primarily located as standalone stores in high-street areas and shopping hubs of such cities. The Company follows the concept of “value retailing“ to target the strata of the population belonging to the expanding “aspiring class“ and “middle class“ based on the customer’s socio-economic conditions, purchasing power, demographic details and customer trends. The Company believes its offerings in untapped markets, provide its customers with a different shopping experience, comprising of a vast range of value retail products under a modern ambience and feel of a large retail mall.
The Company’s total income has grown at a CAGR of 30.21% from Rs. 980.71 million in Fiscal 2008 to Rs. 2,819.54 million in Fiscal 2012. Its profit after tax has grown at a CAGR of 33.04% from Rs. 35.24 million in Fiscal 2008 to Rs. 110.40 million in Fiscal 2012. V-Mart’s total income stood at Rs. 2,500.59 million for the eight month period ended on November 30, 2012 and profit after tax was Rs. 130.80 million for the same period.
Around 80.40% of its total income is from apparels and general merchandise and 19.45% of revenue is from Kirana Bazaar for the eight months period ended November 30, 2012. V-Mart’s stores have grown from 22 in Fiscal 2008 to 62 as on the date of the Red Herring Prospectus and square feet under operation has increased from 2.11 lac Sq.Ft. in Fiscal 2008 to 5.06 lac Sq.Ft. as on the date of the Red Herring Prospectus.
The Company proposes to utilize funds, which are being raised through the Fresh Issue, towards (a) opening of 60 new stores; (b) expansion of distribution centers; (c) working capital requirements; (d) general corporate purposes; and (e) meeting the Issue expenses.
The Equity Shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.
Anand Rathi Advisors Limited is the sole Book Running Lead Manager (BRLM) to the Issue and Karvy Computershare Private Limited is the Registrar to the Issue.

“V-Mart Retail Limited (the “Company”) is proposing, subject to market conditions and other considerations, to make an initial public offer, comprising of a Fresh Issue and Offer for Sale, of its Equity Shares, and has filed a Red Herring Prospectus (“RHP”) with the Registrar of Companies, National Capital Territory of Delhi and Haryana (“RoC”). The RHP is available on the website of SEBI at www.sebi.gov.in, the website of the Company at www.vmart.co.in as well as on the website of Anand Rathi Advisors Limited, the Book Running Lead Manager at www.rathi.com. Potential investors should note that investment in Equity Shares involves a high degree of risk. For details, please refer to and rely on the RHP, including the chapter titled “Risk Factors” of the RHP.”

Please note that non-residents including alternative investment funds registered with SEBI and containing funds from foreign investors, foreign venture capital investors, foreign institutional investors, qualified foreign investors, non resident Indians, multilateral and bilateral development financial institutions are not permitted to participate in this Issue