Spencer's Retail to raise Rs 80 crore rights in maiden rights issue

The maiden rights issue

of Spencers Retail of Rs 80 crore to meet its working capital needs and other general purposes opened on Tuesday.

The issue will close on August 18, company officials said.

The retailer is offering 1,06,04,563 rights equity shares of Rs 5 each at an issue price of Rs 75 per equity share, including premium of Rs 70.

The rights entitlement ratio is 2:15, which means the company is offering two rights shares for every 15 shares held.

A rights issue is an offer to existing holders to purchase additional shares at a discounted price and is issued in proportion to their existing holding.

The company operates 191 retail stores of various formats in 42 cities, including Nature's Basket which it had acquired last fiscal. Its trading area is 14.60 lakh sq ft.

It has deepened its presence through brick-and-mortar stores in north, east, west and south India, along with an online presence in 17 Indian cities, the officials said.

Spencers reported a net loss of Rs 57 crore and a total income of Rs 2,403 crore on a standalone basis in FY20, they said adding the business remained EBITDA-positive with around 4.6 per cent margin.

The companys net consolidated debt stood at Rs 191.5 crore, the officials said.

In its performance overview, Spencers has maintained that during FY21, it plans to expand its presence in existing clusters. This will also help the company leverage its back end capabilities and optimise marketing costs.

The company will also focus on increasing its non-food business revenues, the officials said.

In FY20, Spencers acquired Nature's Basket which gave it an entry into Mumbai and the western part of India.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel