Retail India Business - News, Views and Much More

Retail India: Shoppers Stop IPO News Update

National Association of Small Investors, NASI, has boycotted OBC and Shopper’s Stop IPOs. It says that Oriental Bank of Commerce, OBC, and Shopper’s Stop IPOs are overpriced. NASI is likely to move Mumbai High Court against Shopper’s Stop IPO.

Source: CNBC

Shoppers Stop IPO Fully Subscribed

The initial public offering of retailer Shopper's Stop Ltd. was fully subscribed just over an hour after its opening on Thursday, a banker said.

The issue was bid about 1.3 times by 11:15 am, with nearly half the bids coming in at the top end, the banker said. The issue closes on May 4.

The issue of 6.95 million shares represents 20.2 per cent of the retailer's expanded equity, priced at Rs 210 to Rs 250 per share, raising up to Rs 170 crores.

Source: The Economic Times

Retail India: Shoppers Stop Go Ahead With IPO

In a much anticipated relief, the High Court has come to the rescue of Shoppers Stop with a green signal to go ahead with the proposed IPO.

-ed

The Court has also directed other courts to not make any interim ex parte order on the Shopper's Stop IPO.

Excerpts from an exclusive CNBC-TV18 interview with B S Nagesh, CEO of Shoppers' Stop.

On the Supreme Court's order.

This is a green signal to go ahead with the IPO. They suggested that, until further orders, no other court shall make any other interim ex-parte order on the subject matter. We are very happy about this decision.

On when the IPO is likely to open.

This is the Supreme Court order and we will send the fax to the merchant banker and Sebi. We hope to open the issue at the end of the day today or tomorrow. We will have to wait for Sebi to give us the go-ahead. I am sure that our merchant bankers are taking it to Sebi as we speak.

Source: CNBC / MoneyControl.com

Shoppers' Stop gets SC nod for stalled Rs. 150 cr. IPO

New Delhi, April. 27 (PTI): In a major relief to India's leading retailer Shoppers' Stop Ltd, the Supreme Court today cleared the decks for its Rs 150 crore initial public offer by blocking a Gauhati High Court stay order.

Sounding an omnibus warning to all fora against passing any interim order on this issue, a Bench comprising Justice N Santosh Hegde and Justice S B Sinha said "in the peculiar facts and circumstances of the case, the interest of justice will be met only by stay of the impugned order."

This relief came on the petition filed by the company challenging yesterday's order of Shillong Bench of Gauhati High Court restraining market regulator SEBI, from opening its IPO today. The petition before the High Court was filed by an organisation called North East Investors Forum (NEIF).

The Mumbai-based company, through senior advocate R F Nariman, alleged that the PIL before the High Court was filed with a "mischievous" motive a day before the IPO was to open.

"The petitioner apprehends that the entire litigation which is being initiated at Shillong is at the behest of Gopal L Raheja and has been filed at a place which is not easily accessible to circumvent the caveats filed by the company in other parts of the country," it said.

Terming that the High Court order has caused a lot of inconvenience to the company, the petition said "Shoppers' Stop Ltd has already deposited Rs 30 crores on April 25 towards promoters contribution as per the legal requirements."

The apex Court, while staying the interim order of the High Court, issued notices to NEIF, Securities and Exchange Board of India and the Centre.

Source: The Hindu 

Retail India: Shoppers Stop IPO Put on Hold

Well as sources revealed earlier yesterday and the much speculated news in close circles was confirmed last night with most news channels and todays newspapers breaking the news over developments at Shoppers Stop.

A unheard North East Investors Association has filed a PIL through the Shillong bench of the Guwahati High Court. Meanwhile, a Kolkata-based organisation of minority investors, Burrabazar Investors Welfare Association, has also moved the Calcutta High Court against the IPO of Shoppers' Stop.

The Association, which has named Mr C. Raheja, Mr R. Raheja and Mr Neel Raheja as the violators, has also made SEBI a party to the case.

A writ petition filed today has referred to Section 274(1)(g) of the Companies Act, 1956, claiming that these directors were also directors of certain other companies that have not met the requirements laid down in the statute. The other companies include Eastlawn Resorts and Mass Traders, it has been alleged.

Section 274(1), it may be mentioned, relates to disqualification of directors. It lists the grounds on which a person shall not be capable of being appointed director of a company. Specifically, Section 274(1)(g) deals, inter alia, with persons who are already directors of a public company that has not filed the annual accounts and annual returns for a certain period of time.

The Act has dealt with disqualification, provided such a person shall not be eligible for appointment as director of any other public company for a period of five years from the date on which such public company (in which he is a director) failed to file annual accounts and annual returns under certain clauses.

The Burrabazar Investors’ Welfare Association (BIWA), a Kolkata-based body, today moved a writ petition challenging the IPO before at the Calcutta High Court. However, no order was passed and May 10 was set as the next date for hearing.

The Shillong High Court Bench passed the order on a case filed under Section 274 (1G) of the Companies Act in response to a petition filed by the North East Investors’ Association (NEIA).

In both the cases, investors accused the Rahejas, promoters Shoppers’ Stop, of failing to hold annual general meetings of firms controlled by them and of not filing annual reports for several years.

The other Raheja companies cited include East Lwan Resorts and Mass Traders Ltd.

In the petition, the Burrabazar Investors Welfare Association said Ravi Raheja, Chandra Raheja and Neel Raheja -- the directors of Shoppers’ Stop -- should not be permitted to float a public issue as they were legally handicaped.

Source: The Hindu and Business Standard

Retail India: Possible Scoop

Well the problem with sharing news which is just out and not quotable is it could lead to complications especially when the scoop is really huge. If the information is true, then this is really huge to a quite a few from the industry. Would be able to quote the same only tomorrow morning.

Retail India: India is Wal-Mart’s first choice to expand

While the government is still debating whether to allow 26% or 49% foreign direct investment (FDI) in retail, the world’s largest corporation $288 billion Wal-Mart Stores Inc has declared India as its first choice for expansion.

Elaborating on the company’s international expansion plans on Friday, chief executive of Wal-Mart Stores Inc H Lee Scott said he saw India ahead of all other markets, including Russia and Turkey. He also indicated that in markets where Wal-Mart was not present, it would like to enter a ‘little bit early’.

“It’s going to be a great retail market. When the time is right, we are going to do it,” Mr Scott said in reference to the retail major’s plans to enter India, according to Bloomberg. He was talking at a conference of retailers in Istanbul.

Though Wal-Mart does not have a retail presence in India, its Bangalore office outsourced over $300 million worth of goods directly and $800 worth through third-party suppliers in India in 2004. And it’s hungry for more.

“With the large manufacturing base for India’s growing domestic consumer market, Wal-Mart sees excellent opportunities for expanding its supplier base in India and is working to identify new categories. India’s suppliers are innovative and supportive of trends in various departments and sectors. They are adopting key management principles and are responsive to our needs, flexible and generally easy to work with,” says Wal-Mart’s director, international corporate affairs Beth Keck.

Wal-Mart apart, several other players such as Carrefour, Ahold, Starbucks are also believed to have been actively doing the groundwork for entry into India after the government showed its willingness to open up the sector to FDI.

“Quite a few players are already scouting for partners. They have done their market research and surveys,” PricewaterhouseCoopers executive director NV Sivakumar said but refused to name any particular retailer. Another industry expert said teams of several retail giants have been visiting India regularly to either meet their suppliers or to review real estate or take stock of the supply chain. “The number of global retailers showing interest in India are too many to mention,” KSA Technopak’s Harminder Sahni said.

Source: Freshplaza

Retail India: Shoppers Stop IPO Red Herring Prospectus

Shoppers Stop IPO should be out on April 27th 2005. The Red Herring Prospectus of Shopper’s Stop Ltd filed with Registrar of Companies  is available at enam.com

Since copyright and other protection prevents me from hosting the document here, its still available on Enam and can be downloaded.

Retail India: Private Labels Show the Way Ahead

With the organized retail sector steadily growing, Private Labels appear to have made its mark with key retailers like Pantaloons and Westside. Close to 75% of all sales in Pantaloon is under its own brands and in Westside the figure is at 99%. Private labels help the retailer earn above average industry margins which is at 15 to 20% in the garments industry. Big Bazaar and Viveks has also recently launched in select categories its own store brands.

Retail India: Private Labels Show the Way Ahead

With the organized retail sector steadily growing, Private Labels appear to have made its mark with key retailers like Pantaloons and Westside. Close to 75% of all sales in Pantaloon is under its own brands and in Westside the figure is at 99%. Private labels help the retailer earn above average industry margins which is at 15 to 20% in the garments industry. Big Bazaar and Viveks has also recently launched in select categories its own store brands.

Retail India: Disneyland in India

Disney CEO Michael D. Eisner, is expected to meet key politicians in India including President Kalam. Apart from this being a coutesy call, the visit is also to stregthen and boost Disney Indias presence from just the TV Channels to more of a Retail presence.

Retail India: Shoppers Stop IPO

Shoppers' Stop IPO  of 69.46 lakh equity shares of Rs. 10 each is stated to be open on April 27. The company has fixed a price band of Rs. 210-250.

With the current trend and premium at which Trent (westside) and Pantaloon is currently traded the Shoppers Stop IPO is a definite "Buy".