V2 Retail gains on green signal to preferential allotment

V2 Retail, at its board meeting held on February 26, 2015, recommended issue of convertible warrants on preferential basis to Bennett Coleman and Company. After the news hit the market, the stock touched a high of Rs 44.80 during the day.

V2 Retail's net profit surged 58 percent to Rs 5.15 crore on 12.8 percent growth in net sales to Rs 79.16 crores in the third quarter. After the debt ridden Vishal Retail chain was sold to a consortium led by private equity giant TPG, its founder Ram Chandra Agarwal plans to focus his new retail business, V2 Retail. Agarwal is aiming at expanding network of V2 Retail stores, which primarily sell apparel, in various states, including Uttar Pradesh and the North-East.

After the global slowdown that hit the retail industry in 2008, it badly affected the Vishal Retail business, forcing Agarwal to exit the same. Learning lessons from his past mistakes, he is cautious about managing cash flow, controlling expansion and not seeking short-term debt.