V-Mart Retail IPO opens on 1 February 2013

IPO price band at Rs 195 to Rs 215 V-Mart Retail's initial public offering (IPO) of 44.96 lakh shares opens for subscription on Friday, 1 February 2013. The issue closes on 5 February 2013. The issue comprises of a fresh issue of 27.61 lakh shares and offer for sale of 17.35 lakh shares by Naman Finance and Investment. The issue will constitute 25.04% of post issue paid up capital of the company. The IPO price band has been fixed at Rs 195 to Rs 215. The issue has been graded by CARE and has been assigned the "CARE IPO Grade 3", indicating average fundamentals. The company proposes to utilise the funds, which are being raised through the fresh issue to open 60 new stores; expansion of distribution centres; working capital requirements; general Corporate Purposes; and to meet the Issue expenses. V-Mart Retail is one of the pioneers in setting up stores across various small Indian towns and cities including Sultanpur, Ujjain, Motihari. It primarily operates in Tier-II and Tier-III cities, with a chain of "value retail" departmental stores offering apparels, general merchandise and kirana, catering to the entire family. Based in New Delhi, its operations are spread across northern, western and eastern parts of India.