ICICI Venture sells 5% in Subhiksha to ICICI Pru MF

ICICI Venture, which holds 30% stake in discount retail chain Subhiksha, has offloaded 5% to ICICI Prudential Mutual Fund for an estimated Rs 75 crore

This brings ICICI Venture’s shareholding in the company to 25%. When contacted, Subhikhsha managing director R Subramaniam confirmed the change in equity stakes, reports Benny Antony in Mumbai.

ICICI Venture had initially taken a 10% stake in the company in July 2000. It had increased its stake in the retail outlet with another round of funding worth Rs 25 crore in late 2004. Started in March 1997 in Chennai, the retail chain, which operates in four verticals namely fruits and vegetables, pharmaceuticals, FMCG and telecom, currently has 800 stores. The company was recently in the news following speculations that it might be acquired by Reliance Retail.

The company had, however, denied any such development. It is planning to increase retail presence across the country to 1,000 outlets by the year-end. The company, which had clocked revenues of around Rs 800 crore during FY07, is also looking to tap the capital market after reaching the 1,000-store mark.Subhiksha had raised Rs 80 crore through a rights issue recently and is planning to achieve a turnover of around Rs 3,500 crore by the year-end.

(Source: Economic Times)