Vishal Retail, a Rs 1,000-crore New Delhi-based chain, is weighing a second round of fund-raising through the qualified institutional placement (QIP) route to mop up Rs 200 crore.
Company sources said expansion is imperative, so if money can’t be raised via QIP, the company strike revenue-share agreements with mall developers and also sign up franchisees.
Vishal Retail is also considering expaning its small-format stores to categories such as consumer durables and footwear. These formats, of 3,500 sq ft each, may be named Vishal ‘TechnoMarts’ and ‘FootMarts’.
“When one’s own funds are squeezed, companies like to play with entrepreneurs’ funds, especially when they are willing to invest,†aid Ambeek Khemka, group president, Vishal Retail.
On the QIP route, Khemka said the market condition would drive decisions.
For the franchisee model, Vishal Retail is targeting players that own real estate or work on low rentals to keep the venture viable in times of high real estate costs.
