The Hindu Business Line : Piramyd Retail files red herring with SEBI

PIRAMYD Retail filed its draft red herring prospectus with the Securities and Exchange Board of India to enter the capital market with a public issue of 90 lakh equity shares of Rs 10 each for cash through the 100 per cent book building process.

The issue includes a promoter contribution of 40 lakh equity shares and net offer to the public of 50 lakh equity shares. The net offer to the public constitutes 25 per cent of the fully diluted post issue paid-up capital of the company.

The company proposes to allocate 50 per cent of the net issue to the public to qualified institutional buyers and 15 per cent to non-institutional bidders and 35 per cent to retail individual bidders.

The Piramals-promoted Piramyd Retail Ltd plans to use the funds to expand its lifestyle retail store chain set up under the brand `Piramyd Megastores' to 12 from the current four and increase the number of its TruMart Supermarket to 45 from the current eight by 2007. TruMarts offer food, home and personal care products.

According to Mr Krish Iyer, Managing Director and CEO, as quoted in a press release, "Our current plan is to concentrate on Mumbai and Pune, where we have already built a significant presence for TruMart. We can leverage on the early-mover advantage, in markets like Pune and consolidate our presence. We propose to open 13 additional TruMart stores during 2006 and 24 TruMart stores over 2007. We continue to evaluate options, spot global trends and aim at getting the early mover advantage. This philosophy and drive is spread across products, categories and segments."

The book running lead managers for this issue are Enam Financial Consultants Private Ltd, DSP Merrill Lynch Ltd and Edelweiss Capital Ltd.

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