In an effort to accelerate growth and put together the desired capital, retail major Piramyd Retail has divested its 63.9 per cent stake to Indiabulls Real Estate (IBREL).
Confirming the news, Nandan Piramal, vice chairman and managing director, Piramyd, told Indiaretailing: “The acquisition news is true, and we have already issued a statement in this regard. As of now, I cannot share much information other than the issued statement; however, we’ll announce further plans by next week.”
The issued statement read: “To be successful in the retail business you need to achieve accelerated growth, which requires large capital infusion. Indiabulls Wholesale Services Limited is well placed to take forward the growth story put in place by us. This divestment will ensure continued growth opportunities not only for the business, but also for the employees who will now be a part of another fast-growing business group.”
Meanwhile, Piramyd Retail CEO Vishal Mirchandani also refused to comment on the development, and asked for any query to be referred to the management for details.
“Everything that we could share has been issued in a statement; however, I shall answer the related queries via email,” Bhalinder Singh, vice president, Indiabulls Wholesale, told Indiaretailing to confirm the development from Indiabulls’ side.
The statement issued by Ikroop Singh, CEO, Indiabulls Wholesale Ltd, read: “Indiabulls Wholesale Services Ltd has a committed investment of Rs 1,500 crore for its retail business and is planning on opening 30 big-box stores by 2010. This acquisition clearly highlights Indiabulls’ plan to be the leader in the retail industry in India by making sure that we are present in all the major retail verticals. With this acquisition, Indiabulls will have strong presence across wholesale/cash-and-carry, lifestyle and convenience store formats. We aim to provide the Indian shopper the best possible value for their money.”
The corporate communication official at Indiabulls said: “Everything is in the public domain and none of the officials can comment on anything, until the required formalities are completed at the stock exchanges and SEBI. The details of the expected issue can be obtained from BSE.”
The announcement at the BSE site says that Edelweiss Capital Ltd on behalf of Indiabulls Wholesale Services Ltd along with Indiabulls Real Estate Ltd issued the public announcement (PA) to the shareholders of Piramyd Retail Ltd. The company will acquire up to 4,032,750 equity shares (20 per cent of the fully diluted voting capital) of Piramyd Retail, at a price of Rs 74.73 per fully paid-up equity share.
The date of opening of the offer, mentioned on BSE site, is February 2, 2008, and this will close on the following day.
– Ranjan Kaplish
