The RPG group has decided not to offload its 2.5 per cent stake in MusicWorld, its retail music chain. The group has taken this decision as they were not able to get a proper valuation for the stake.
The group was in talks with financial institutions including ICICI, UTI and IL&FS to offload the stake. The group was looking to fund its expansion programme for MusicWorld through the stake sale. The investment for the proposed expansion is pegged at Rs 60 crores. The group had appointed JM Morgan Stanley as merchant bankers for the deal.
MusicWorld is a division of Spencer & Co. the group’s retail sector arm. The store currently has 13 stores across Chennai, Kochi, Bangalore, Hyderabad, Delhi, Chandigarh and Kolkata.
The group is planning to have around 25 retail outlets by March 2003. MusicWorld had a turnover of around Rs 54 crores in the last fiscal year.