The Debt-ridden Vishal Retail is up for sale. As part of the Corporate Debt Restructuring Plan, the retailer's bankers have set a precondition of a strategic investor to be brought in by Vishal.
The current promoter, Mr Ram Chandra Agarwal holds 62% stake in the company. . The market cap is around 150 crores.
Vishal has been going through troubled times since the last one year. In an effort to consolidate, 20 stores were shut down in the last 6 months and currently Vishal has 170 stores over 110 cities with an employee strength of 8500. Over 60% of Vishal's revenues come from Lifestyle products - apparel and footwear while food takes up 25% and the rest from household and consumer electronic products.
There are 13 main lenders to the retailer with SBI leading the group with an exposure of 175 crores. Other big lenders are HDFC, UCO, LIC, HSBC etc.
It is believed that Vishal is in talks with 2 potential investors including a prominent retailer. The process of restructuring may see the exit of Mr Ram Agarwal completely from Vishal Retail.
Saturday, October 31, 2009
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