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Rediff.com  » Business » Shoppers' Stop may float IPO in 2004

Shoppers' Stop may float IPO in 2004

November 07, 2003 09:35 IST

Shoppers' Stop is planning to hit the stock market with its initial public offering next year. B S Nagesh, customer care associate, managing director & CEO of Shoppers' Stop, said the company will come out with a public issue before October 2004.

The issue size has not yet been decided. The proceeds of the issue will, however, be used to fund the retail giant's expansion plan.

With 13 stores in its portfolio, Shoppers' Stop plans to take the number of stores to 35 by 2007.

Part of this expansion plan will be funded through internal accruals and the balance from the public issue.

Typically, investment in setting up a store ranges between Rs 6 crore (Rs 60 million) and Rs 8 crore (Rs 80 million) depending upon the location of the store.

Meanwhile, the company has entered into an exclusive arrangement with Austin Reed, the leading British quality fashion and lifestyle brand for men and women.

Nagesh said though the brand will cater to the upper segment, prices will be 30-40 per cent cheaper than international prices.

To start with, Shoppers' Stop will launch a men's classic formal range. Austin Reed's formal wear offer includes formal and semi-formal shirts and trousers priced Rs 1,299 onwards and Rs 1395 onwards, as well as a comprehensive range of suits priced upwards from Rs 11,000.

Nagesh said, gradually the chain will launch women's wear and casuals. The Austin Reed brand is available in Delhi and Mumbai and will shortly be available in Kolkata.

BS Bureau in Kolkata