Aditya Birla’s PE arm to offload 14 percent stake in V-Mart

Diversified conglomerate Aditya Birla group’s private

equity arm has decided to offload 14 percent stake in V-Mart as the New Delhi-based departmental store chain began its road-show for an Initial Public Offering. It expects to raise Rs 125 crores through the IPO. The Birla fund will retain 9 percent stake in the retailer even as its investment rises more than three-fold, on the back of growing investor interest.

V-Mart, which is focused on Tier-II, III markets, is the first retail chain to hit the capital markets after foreign direct investment was opened up in multi-brand retail sector. It is expecting Rs 450 crores market capitalization upon listing on the stock market.

Naman Finance & Investment, an investment entity of the Aditya Birla Group, picked up a 23 percent stake in V-Mart after investing Rs 22 crores in 2008. The promoters, including Lalit Agarwal, a cousin of Vishal Retail founder R C Agarwal, started V-Mart in 2003 in Ahmedabad. The promoters will hold 59 percent stake post the offer down from the current 76 pecent. Anand Rathi is the lead book runner for the public issue.