The Supreme Court on Wednesday approved the Rs 150 crore (Rs 1.5 billion) initial public offer of India's leading retailer Shoppers' Stop by staying an interim order of the Shillong Bench of Gauhati High Court restraining the IPO.
When the petition by the Shoppers' Stop was mentioned before the Bench headed by Justice N Santosh Hagde, he said in the peculiar facts and circumstances of the case, the interest of justice will be met only by staying the impugned order of the High Court.
Ensuring a hassle free IPO, the Court said till it decided the matter no other Court or forum shall pass any interim order pertaining to the IPO.
Shoppers' Stop had announced its IPO and decided to open the issue for subscription today and close it on May 3.
However, SEBI asked the company on Tuesday to put it on hold until further orders following the Shillong bench's verdict on a PIL filed by North East Investors Association against the IPO.
Following today's Supreme Court order, the retailer can go ahead with the IPO to raise Rs 150-175 crore (Rs 1.5 to 1.75 billion) for funding its expansion, estimated to cost about Rs 130 crore (Rs 1.3 billion).
Shoppers' Stop, a Raheja group company, will offer close to 7 million shares at a price ranging between Rs 210-250, B S Nagesh, CEO, Shoppers' Stop said.
The final price would be determined through the book-building process. The Rahejas will buy about 1.2 million shares that would be put on offer while 0.2 million shares will be kept for employees of the retailer.
Of the net offer for public, 60 per cent or 3.33 million shares have been kept for qualified institutional buyers, 15 per cent high net worth individuals and the remaining 25 per cent would be for retail investors.
The promoters' holding will come down to 67 per cent after the IPO from the present 79 per cent while that of ICICI Ventures and IL&FS will come down to 8 per cent from the present 11 per cent.
The retail chain major had a turnover of Rs 511 crore (Rs 5.11 billion) last year and a net profit of Rs 19 crore (Rs 190 million).
It operates through 16 stores selling branded and own-labelled apparel, footwear, perfumes, cosmetics, jewellery, leather and home products.
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