The Hindu Business Line : Shoppers' Stop IPO priced at Rs 210-250

THE K Raheja Corp Group-promoted Shoppers' Shop has fixed the price band for its maiden public offer of 69.46 lakh shares between Rs 210 and Rs 250 per share. The issue is slated to open on April 27 and close on May 3.

This price band allows the company to raise a maximum of Rs 173 crore.

Post-issue, the promoters' stake would touch around 67 per cent from the existing 79.75 per cent holding.

The book-running lead managers are Enam Financial Consultants Pvt Ltd, JM Morgan Stanley Pvt Ltd, Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd and co-book running manager is IL&FS Investmart Ltd.

Of the fresh issue of equity shares, which would form 20.21 per cent of the fully diluted post-issue paid-up capital of the company, promoters would contribute 11.9 lakh equity shares and 2 lakh shares have been reserved for the employees.

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

Shoppers' Stop will plough the proceeds from the issue to set up 11 stores in the next two years. It also intends to utilise part of the proceeds for renovation and expansion of its existing stores.

Among the risk factors listed in the red herring prospectus, the company said there are family disputes between some of the promoters and the G.L. Raheja family. These disputes could result in claims and counterclaims, which may have an impact on the promoters of the company. However, the promoters believe that these claims may not have an impact on the company except for the dispute relating to the Bangalore premises.

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Shoppers' Stop IPO priced at Rs 210-250