Win some, lose some, the Reliance way
Reliance pips the Rahejas in realty battle but fails to win over discount retail chain Subiksha.
By TNN |
AHMEDABAD: Decks seem to have been cleared for an October debut of Reliance Industries’ retail venture in Ahmedabad, with the Gujarat High Court vacating an interim stay on transfer of property at the Iscon Mega Mall on SG Highway.
A single judge bench comprising Justice A M Kapadia on Thursday vacated an interim stay and also dismissed the petition filed by Raheja group’s Shoppers’ Stop which had moved the High Court on April 19.
Rahejas’ plea for a stay on Thursday’s order, seeking time to appeal against it before a division bench, was turned down.
Soon after the judgement was pronounced, the mall promoters and Reliance group company Pushti Enterprises inked a sale deed for around 1.87-lakh sq ft space at the 4.75-lakh sq ft Iscon Mega Mall for Rs 88.37 crore. For Reliance, however, the total deal would cost around around Rs 100 crore, whih would include the cost of enabling infrastructure like escalators.
When contacted, Iscon Mega Mall developer Pravin Kotak confirmed that a sale deed with RIL group has been signed on Thursday. Shoppers’ Stop managing director BS Nagesh declined to comment on the matter.
The latest development in this fierce battle for prime retail space between Reliance and Rahejas comes over two months after the Rahejas moved a lower court in Ahmedabad and then the Gujarat High Court to stall the sale of space to Reliance.
This was after title clearance advertisements in newspapers in early April 2006 for the same retail space, for which Rahejas had signed a letter of intent in November 2004 proposing to enter into a lease agreement at a later stage. Shoppers’ Stop was keen on setting up a Hypercity and Shoppers’ Stop outlet at this space.
Also read:
But fails to win over Subiksha
(To read please press the next button)
A single judge bench comprising Justice A M Kapadia on Thursday vacated an interim stay and also dismissed the petition filed by Raheja group’s Shoppers’ Stop which had moved the High Court on April 19.
Rahejas’ plea for a stay on Thursday’s order, seeking time to appeal against it before a division bench, was turned down.
Soon after the judgement was pronounced, the mall promoters and Reliance group company Pushti Enterprises inked a sale deed for around 1.87-lakh sq ft space at the 4.75-lakh sq ft Iscon Mega Mall for Rs 88.37 crore. For Reliance, however, the total deal would cost around around Rs 100 crore, whih would include the cost of enabling infrastructure like escalators.
When contacted, Iscon Mega Mall developer Pravin Kotak confirmed that a sale deed with RIL group has been signed on Thursday. Shoppers’ Stop managing director BS Nagesh declined to comment on the matter.
The latest development in this fierce battle for prime retail space between Reliance and Rahejas comes over two months after the Rahejas moved a lower court in Ahmedabad and then the Gujarat High Court to stall the sale of space to Reliance.
ADVERTISEMENT
This was after title clearance advertisements in newspapers in early April 2006 for the same retail space, for which Rahejas had signed a letter of intent in November 2004 proposing to enter into a lease agreement at a later stage. Shoppers’ Stop was keen on setting up a Hypercity and Shoppers’ Stop outlet at this space.
Also read:
But fails to win over Subiksha
(To read please press the next button)
By Rajesh Chandramouli
CHENNAI: The past few months have been very hectic for discount retail chain, Subhiksha. First, the crashing stock market spoiled its IPO plans, which — in turn — pushed its expansion efforts into a tailspin. That’s when Reliance Retail offered to be a knight in shining armour and acquire the company. But its promoter and managing director R Subramaniam has rejected this offer.
Sources said Reliance had approached Subramaniam recently with an offer. “The offer was turned down by Subhiksha and the company has decided to grow on its own. In fact, he (Subramaniam) has chalked out a punishing schedule for opening more stores,” the source added.
It is learnt that the Reliance Group had approached Subramaniam through ICICI Venture — which has a 24% stake in the company. Cumulatively, the venture investor had pumped in Rs 50 crore in two tranches.
Subramaniam, however, denied having any talks with Reliance. “These are wild rumours that are doing the rounds. There is absolutely no truth in it,” he said.
ADVERTISEMENT
It is learnt that the supermarket chain has an aggressive roll-out plan. Eighty stores in Hyderabad, 56 in Bangalore, 80 in Gujarat across Ahmedabad, Vadodara, Surat and Rajkot, 180 in Mumbai and Pune, 145 in Delhi region, 74 in Kerala and 95 in Kolkata — That’s how many new store launches Subiksha has on its drawing board. “On Wednesday, we opened 15 stores in Delhi,” he said.“IPO is a major milestone for any company, we are in the process. It will take time,” he said. He admitted that the falling stock market had made things difficult.
In a bid to drum up the managerial bandwidth for the growth, the chain has roped in senior professionals from across sectors to head its various divisions across the country.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
