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Tuesday, February 23, 2010

Big Bazaar IPO shelved, says Biyani

Kishore Biyani-controlled Future group seems to have shelved its plans to go for an initial public offer (IPO) for its flagship value retail business, Big Bazaar.

The value retail businesses — Big Bazaar and Food Bazaar —- were hived off into a separate company, Future Value Retail, some time ago, and an IPO had been one option to raise funds for Big Bazaar.

However, Biyani said on Monday that the Future group was not looking at an IPO for Big Bazaar. “There will be no stake sale either,” he said.

“Big Bazaar will develop its own balance sheet and have its own expansion plans. We have other plans for raising funds for Big Bazaar,” Biyani said, declining to say what the “other” options are.
Biyani is also looking to make the value retail business contribute $3 billion to the Future group’s turnover by June 2011. The current group turnover is more than $2 billion, of which the value retail business contributes around 55%. Plans are also afoot to increase the total retail area to 17 million square feet by 2011 from the present 14 million square feet. Meanwhile, Future group and Keventer group are exploring opportunities for setting up Big Bazaars near railway stations in the country

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