Indiabulls buys Piramyd Retail, makes open offer
Indiabulls Wholesale Services, a unit of Indiabulls Real Estate Ltd, has agreed to buy 63.9 per cent of Piramyd Retail for 400 million rupees ($10 million), a newspaper advertisement showed at the weekend.
By PTI |
MUMBAI: Indiabulls Wholesale Services, a unit of Indiabulls Real Estate Ltd, has agreed to buy 63.9 per cent of Piramyd Retail for 400 million rupees ($10 million), a newspaper advertisement showed at the weekend.
Indiabulls has also made an open offer to acquire a further 20 percent from Piramyd shareholders, as required by law, at 74.73 rupees per share, or 301 million rupees. Shares in Piramyd Retail, an arm of the Ashok Piramal Group which operates more than 40 grocery and department stores, closed at 103.05 rupees on Friday.
The open offer begins Feb. 2 and closes Feb. 21. Indiabulls, which plans to spend 15 billion rupees in 30 wholesale centres by 2010, will also provide loss-making Piramyd a loan of 1.21 billion rupees to repay debt, the advertisement issued by Edelweiss Capital, manager to the issue, showed.
India's fragmented retail industry, valued at about $350 billion, is forecast to nearly double by 2015. It is dominated by small family-owned shops, but large corporates such as Reliance Industries, the Tata Group, the Aditya Birla group and the RPG Group are expanding their operations in a market where foreign investment is restricted.
Indiabulls has also made an open offer to acquire a further 20 percent from Piramyd shareholders, as required by law, at 74.73 rupees per share, or 301 million rupees. Shares in Piramyd Retail, an arm of the Ashok Piramal Group which operates more than 40 grocery and department stores, closed at 103.05 rupees on Friday.
The open offer begins Feb. 2 and closes Feb. 21. Indiabulls, which plans to spend 15 billion rupees in 30 wholesale centres by 2010, will also provide loss-making Piramyd a loan of 1.21 billion rupees to repay debt, the advertisement issued by Edelweiss Capital, manager to the issue, showed.
India's fragmented retail industry, valued at about $350 billion, is forecast to nearly double by 2015. It is dominated by small family-owned shops, but large corporates such as Reliance Industries, the Tata Group, the Aditya Birla group and the RPG Group are expanding their operations in a market where foreign investment is restricted.
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