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Spencer's demerger or IPO on advisors' report: Goenka

Source : IANS
Last Updated: Tue, Feb 12, 2013 12:00 hrs

Kolkata, Feb 12 (IANS) City-based R.P.-Sanjiv Goenka Group Tuesday said it would take a decision on demerger of its retail venture Spencer's from CESC or launching an initial public offering (IPO) in order to list the retail arm after getting reports from advisors.

Financial advisory firms like KPMG and Ambit Holdings are expected to give reports on the issue by March-end.

The group can get the Spencer's Retail listed either by a 'mirror level demerger' of it from the parent company CESC, a power utility, or by going for an IPO.

"The idea is to have public shareholders into Spencer's. One option is mirror level demerger it from CESC. The second option is you actually do an IPO of Spencer's," said group chairman Sanjiv Goenka.

"This is something that a financial advisor has to advise us. They supposed to give a report on that by end of March," Goenka said.

According to him, Spencer's is expected to break-even by the last quarter of next fiscal.

"Sales are looking better. Margins are also increasing," Goenka said.

During this year floor area of the firm would be increased by 35 percent, he added




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