Shoppers' Stop IPO on April 27

With the initial public offering (IPO) boom on, even the retail industry is all set to capitalise on this trend.

Shoppers' Stop Limited is coming out with its IPO on April 27, 2005. With a face value of Rs 10, the price band has been set at Rs 210 to Rs 250.

The public offering of 6,946,033 equity shares will be offered via the book-building process.

This issue would form 20.21 per cent of the fully diluted post-issue paid up capital of the company. 1,190,477 equity shares are reserved for the promoters, while 2,00,000 equity shares have been reserved for employees.

Of the net offer to the public, 60 per cent has been reserved for allotment on a discretionary basis to qualified institutional buyers and 15 per cent to non-institutional investors. The balance 25 per cent would be allotted on a proportionate basis to retail investors.

Shoppers' Stop currently has 16 outlets in the country and plans to open 11 in the next 24 months in Bangalore, Mumbai, Delhi, Pune, Noida and Hyderabad.

The money from the IPO will also go towards renovation and expansion of existing stores.

B S Nagesh, customer care associate and managing director and CEO, Shoppers' Stop, said: "The retailing industry in India stands at Rs 8,570 billion, out of which just 2 per cent is organised retail. They foresee this market share (of organised retail) increasing to 10 per cent to 12 per cent by 2010."

The book-running lead managers to this offer are Enam Financial Consultants, J M Morgan Stanley, Kotak Mahindra Capital, ICICI Securities and co-book running manager is IL&FS Investsmart Ltd.