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Subhiksha buys Chennai firm, to list shortly
Posted by Yogesh on Sunday, 29 June, 2008
MUMBAI, June 29 – Indian discount food and grocery retailer Subhiksha is acquiring a majority stake in Chennai-based Blue Green Constructions and Investments Ltd, and expects to merge the two firms and list the combined entity shortly.
The boards of the two firms will meet on Monday to consider the merger, Subhiksha said in a statement at the weekend.
The merged entity, Subhiksha Ltd, is expected to list on the Bombay Stock Exchange and the National Stock Exchange, it said. Blue Green currently trades on the local exchange in Chennai.
“This transaction will ensure that Subhiksha has access to capital and continue on the track of growth,” Subhiksha’s founder, R. Subramanian, said.
Subhiksha, which already sells mobile handsets, plans to also sell consumer durables, and expects to have 2 million sq ft of retail space in the segment next year, Subramanian said.
India’s fragmented retail industry, estimated to be worth about $350 billion, is forecast to nearly double in size by 2015.
Source Reuters
