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Tristar Retail Plans Rs.25 Cr. IPO

Retail chain operator Tristar Retail is planning to hit the capital market with an initial public offering or IPO to raise Rs.25 crore.

The company plans to use the IPO proceeds for working capital requirement (Rs.13 crore), expansion of exclusive brand outlets (EBOs) of brand Denizen (with an outlay of Rs.5.85 crore), and investment of Rs.1.13 crore in subsidiary Tristar Retail Concepts Pvt. Ltd. for expansion of exclusive brand outlets of brand Nokia.

As per the draft prospectus filed with the the market regulator Securities Exchange Board of India (SEBI), it is the largest retail operator (in terms of number of stores) of Reebok in India, largest franchisee (in terms of number of stores) of Titan Eye Plus and one of the largest master franchisees in terms of number of stores of Signature/Denizen in India.

The company clocked stand-alone net profit of Rs.3.72 crore on total income of Rs.112.19 crore for the fiscal year ended March 31, 2011.

As of September 31, 2011, the company's debt stood at Rs.82 crore (consolidated) and Rs.48.43 crore (standalone).

Promoters Kamal Shantilal Kothari and his wife Preeti Kamal Kothari along with other group companies hold 91.98 percent stake in the company.

Microsec Capital Ltd . is the book running lead manager to the issue.

As of January 31, 2012, Tristar has 166 retail outlets across 50 cities and 9 states with a portfolio of brands including Reebok, Levi Strauss Signature/Denizen, John Players, Titan, Titan Eye Plus, Nokia and Levis.

by RTT Staff Writer

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