The Loot to file for Rs 100-cr IPO

The Loot, a multi-brand discount store chain that offers leading international and national apparel,

footwear and accessories brands at discounts, is filing papers for Rs 100-cr IPO by the next fiscal. The company plans to file Draft Red Herring Prospectus (DRHP) by March 31, 2011 for its initial public offer through which it hopes to raise Rs 75-100 crores for their expansion and upgrading of warehouses and processing units. They will be filing the DRHP by December and might offload between a 25-40 per cent stake through the IPO opines Jay Gupta, Managing Director of The Loot.

The Loot multi-brand chain offers a 25-60 per cent discount on national and international brands throughout the year and operates in four formats of small, medium, large and extra-large. Loot is immensely popular with the bargain hunting and yet trendy crowd. In terms of number of stores, The Loot has the highest number of stores in the country. Gupta says they are the only model in the world as a multi-brand discount store. The average size is 1,500 to 2,000 sq. ft. and they have 150 stores pan-India.

By the end of 2010, The Loot is expected to add another 50 stores across the country, bringing its total number of retail outlets to 200. The expansion is all based around Tier II-III towns, where the returns are much better. The planned expansion will consider a combination of brand owned and franchised outlets
Whilst they have received offers from Nepal and United Arab Emirates, the current plan is domestic expansion and establishment of The Loot style of shopping.