SRS will issue around 3.5 crore equity shares under the IPO
Faridabad-based SRS Ltd, which has interests in cinema exhibition, retail and food courts, said it will launch an initial public offer (IPO) to raise up to Rs225 crore by next month.
The company will issue around 3.5 crore equity shares under the IPO, through which the promoters will dilute a 25.13% stake. The proceeds of the public issue will be utilised to fund expansion plans.
“We have already received regulatory approvals from the Securities and Exchange Board of India and stock exchanges. With the IPO, we wish to raise Rs225 crore to fund expansion across business segments,” SRS Ltd chairman and managing director Anil Jindal told PTI.
The company has roped in SPA Merchant Bankers, IDBI Capital Markets and Karvy Investor Services to manage the issue, which will be carried out through a book-building process.
“By July-end, we will launch the offer,” he added. Jindal said the proceeds from the IPO will be utilised to increase the number of cinema exhibition screens, retail stores, jewellery stores and food courts currently operated by SRS in North India.
“We are adding 54 new cinema screens, 33 new food courts, 29 retail stores and 17 jewellery stores to our existing network,” he said.
At present, the company operates 23 SRS Value Bazaar retail stores, 15 food courts and 30 cinema screens in North India.
“Our focus is to establish a strong presence across business verticals in tier-II and tier-III cities and towns across the country,” Jindal said.
The company also operates five jewellery retail and wholesale outlets and a jewellery manufacturing unit in Delhi.
For the fiscal year ended 31 March 2011, the company’s total turnover amounted to Rs2,042 crore, Jindal said.
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