Vishal Mega Mart, a leading player in hyper-market, will launch a Rs 50-crore IPO by the yearend to fund its expansion plan.
Vishal Mega Mart, which currently has 16 outlets across 12 locations, plans to open 10 more outlets by March 2006. According to Ram Chandra Agarwal, MD, Vishal Mega Mart, the new outlets will come up in cities like Agra, Chandigarh, Patiala, Pune, Meerut and Surat. "We will be investing Rs 40 crore this year to carry out our expansion. While a part of the funding will be done through internal accruals, we will also go in for a Rs 50 crore IPO in 6-8 months time."
Meanwhile, as part of its expansion strategy, it will be opening its outlets in malls. Said Agarwal, "So far we have been having only stand alone stores. But now we will go to malls as well where ever rent is not too high and have good catchment area. We will be opening our first outlet in KP City Mall in Pune in a month's time. We are also negotiating for mall space in Gurgaon."
Agarwal told exchange4media that the company is targeting sales turnover of Rs 300-350 crore, up from 150 crore of turnover and it will be lining up a marketing and promotional budget of about Rs 10 crore.