RPG-Sanjeev Goenka Group mulls listing Spencer's Retail
Speaking to reporters here, the group's chairman Sanjiv Goenka said several options, including mirror level demerger from the parent company, initial public offering, and induction of a strategic investor, were being looked at for listing of Spencer's Retail.
"Spencer's retail is moving towards a positive EBIDTA (earnings before interest, taxes, depreciation and amortisation). Sooner rather than later, we will definitely do one of the three. We are also in the process of finalising an advisor for the process," Goenka said.
He, however, did not divulge details on by when the retail player could hit the stock market, but said it would not wait for the company to break-even to begin the listing process.
"We expect Spencer's Retail to break-even by the second quarter of next year. But given the government decision on foreign direct investment (FDI) in retail, the current market conditions as well the improving performance of the company, we will begin the process even before it breaks even," he said.
Break-even is the point of balance between making either a profit or a loss. Spencer's Retail Ltd is a subsidiary of CESC Ltd, which is a part of the RP-Sanjiv Goenka Group.
In 2011-12, Spencer's was able to prune its losses to Rs 220 crore from Rs 253 crore in the previous fiscal.
He added that in the first six months of the fiscal year, Spencer's Retail has clocked a turnover of Rs 714 crore compared to
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