With this, the number of stores run by the chain would go up to 27, Shoppers' stop CEO B S Nagesh said in Chennai on Monday.
For its expansion, the company would hit the capital market for the first time with an initial public offer of 69.46 lakh shares of Rs 10 each and has fixed the price band between Rs 210 and Rs 250.
The issue opens on April 27 and would close on May 3. "It also intends to utilise part of the proceeds for renovation and expansion of its existing stores," Nagesh said.
The estimated cost of setting up 11 stores is Rs 110-120 crore (Rs 1.1 to 1.2 billion) and renovation of three existing stores would cost Rs 15 crore (Rs 150 million), he said.
Of the fresh issue of 69.46 lakh equity shares, which would form 20.21 per cent of the fully diluted post-issue paid up capital of the company, promoters would contribute 11.90 lakh equity shares and two lakh equity shares have been reserved for employees, he said.
Of the net offer to the public, 33.33 lakh equity shares have been reserved for allotment on a discretionary basis to qualified institutional buyers and 8.33 lakh shares have been reserved for the non-institutional investors and the balance
of 25 per cent offer of the 13.88 lakh equity shares would be alloted on a proportionate basis to retail investors, he said.
