Vishal Retail to enter Real Estate Business
Vishal Retail Ltd to enter into real estate business for which it is seeking shareholders approval and plans to change its name to ‘V2 Retail Ltd’ In March this year, Vishal Retail had announced sale of its retail business to the Sriram Group Company, Airplaza Retail Holdings and the wholesale business to private equity firm TPG Wholesale Pvt Ltd for a total consideration of Rs 70 crore.
After selling off stores and assets of debt-ridden Vishal Retail, the company’s founder R C Agarwal said he is ready to make a come back in the retail space with a chain of stores under the ‘V2′ brand within the next 2-3 months. His new venture will be rolled out under the already publicly listed, Vishal Retail Ltd, with an initial investment of up to Rs 8 crore.
“The Board of Directors of the company in their meeting held on April 9, 2011 decided to change the name from Vishal Retail Ltd to V2 Retail Ltd in view of the approved corporate debt restructuring scheme entered into with its lenders,” the company said in a filing to the Bombay Stock Exchange.
On its move to enter the real estate business, the company said “The company has once again started the retail business from the very beginning, which it had done at the time of incorporation, so to infuse capital into the retail business, the company should explore new businesses to earn revenue”. The company has sought its shareholders’ approval for the purpose through a postal ballot and has appointed CP Associates as scrutiniser. The result of the ballot will be announced on June 25.
Delhi NCR, Real estate in India, V2 Retail Ltd, Vishal Retail, Vishal Retail to enter Real Estate Business
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