Vishal Retail up 2 per cent on deal with TPG

MUMBAI: The debt-laden Vishal Retail on Thursday gained over 2 per cent amid reports that the board has approved an MoU with the US-based private equity major TPG in line with the corporate debt restructuring (CDR) scheme of the New Delhi-based retail chain.

Shares of Vishal Retail settled at Rs 68.40, up 2.17 per cent on the Bombay Stock Exchange, after rallying to an intra-day high of Rs 70.25, up 4.92 per cent, while on the NSE it had tepid 0.60 per cent gain at Rs 67.50.

The debt-ridden retailer yesterday said its board approved the terms of a memorandum of understanding (MoU) with TPG VW in accordance with CDR scheme approved by its lenders. However, it said the terms of the MoU would be subject to negotiations and execution of definitive agreements or documents.

TPG was linked with the troubled retailer for a possible stake purchase in the past as well.

Vishal Retail chairman and managing director Ramchandra Agarwal said he wants to part with his majority stake in the company to revive it. He holds around 63 per cent stake.

Vishal has been reeling under a huge debt of over Rs 735 crore and had last year halted its expansion besides closing some outlets.