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V-mart Retail to double store count in India with 60 new outlets

RBR Staff Writer Published 29 January 2013

Indian department store chain V-mart Retail is planning to double its store count in the country by unveiling 60 new outlets.

The retailer plans to fund the expansion by raising INR1.27bn ($23.5m) from the stock market vide a public offer that closes on 5 February 2013.

Existing investor, Naman Finance and Investment, is looking to offload some of its stake in the retailer leaving the retailer with INR900m ($16.8m) from the sale of shares for retail expansion, reported MoneyControl.com

V-mart chairman and managing director Lalit Agarwal told the website that the chain had so far focused on tier II and tier III locations to leverage first mover advantage.

"We currently own and operate 62 outlets across 53 cities and plan to use the IPO proceeds to open 60 more stores and expand distribution centres, apart from general working capital requirements," elaborated Agarwal.

The retailer follows a cluster-model for its stores, wherein no two stores are more than 150kms apart.

Twenty-three of V-Mart's current outlets are apparel-only while the remaining 39 stores also include a grocery section.