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Sep 27, 2012, 11.15 AM IST
Chennai-based ready-to-eat food retailer RCL Retail entered capital market with a public issue of 57.95 lakh equity shares today.
The issue comprised of promoter's contribution of 21.05 lakh shares and 6.15 lakh shares, which will be reserved for subscription by market makers. Net issue to the public is of 30.75 lakh shares aggregating to Rs 3.075 crore. The issue will close on October 01, 2012.
RCL Retail is engaged in the business of trading of ready to eat snacks, fryums, bakery products, cookies, confectioneries, namkeens, chutneys, mouth-fresheners, juices, mobile food such as vada pav etc.
The company aims to raise Rs 5.795 crore through the issue for setting up of eight new retail outlets (with an outlay of Rs 69.4 lakh); food grain processing unit (with a cost of Rs 4.729 crore); strengthening supply chain management (with Rs 38.90 lakh) and for general corporate expenses (Rs 1 crore).
"Going forward, we plan to deepen our areas of operations by setting up a processing unit with the facility of processing food grains, pulses and retailing under brand name of RCL. We also plan to expand our presence geographically by adding eight (8) retail stores in and around Chennai," the company said.
RCL Retail already spent Rs 1.43 crore from its internal accruals of Rs 1.52 crore on these projects.
Currently promoters Nitesh Lodha and Shreyans Lodha hold 3.65% and 1.84% stake in the company, which will be increased to 11.72% and 10.77% post issue, respectively. Total promoters' holding will be increased to 25.04% from 10.30% post issue.
The equity shares are proposed to be listed on the BSE SME platform.
Guiness Merchant Bankers Pvt Ltd is the book running lead manager to the issue.
Tags: RCL Retail IPO
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