Kolkatta based Prime Retail India Limited has informed the share market(BSE/NSE) that they have planning to enter capital markets with its initial public offer (IPO) of 7500000 shares of Rs 10 each. The issue will constitute 45.10% of the post issue paid up capital of the company. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the same. The premium to be decided via 100% book building process. The IPO price band has not been decided yet. Prime Retail India is an international luxury, designer and fashion watch brand retailer dealing through its chain of retails stores. Company is presently operating 20 stores.
The proceeds of the IPO will be used by the company to open 18 additional new stores across India to accomplish a Pan India presence and for setting up brand retail outlets, capex stores for proposed outlets, upgradation of information technology network and working capital requirements.
The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Sole Book Running Lead Manager to the Issue is Hem Securities Limited.
The company has posted a net profit of Rs 1.62 crore on total income of Rs 32.05 crore for the period of six months ended on September 2010.
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