Premji buys 10% stake in Subhiksha...

In a quiet move, ICICI Ventures has offloaded 10% stake in discount retailer Subhiksha for Rs 230 crore in favour of Azim Premji’s investment company. R Subramaniam, chairman of Subhiksha said that the deal happened more than two months back and Premji’s firm had picked up the stake purely for investment. “It is just a portfolio investment and nothing beyond,” he said. Post this transaction with Premji’s investment firm, I-Ventures stake is trimmed to 23% while the promoters’ stake stands at 51%. Besides, Subhiksha is in the process of reverse merging its operations with NBFC Blue Green Constructions and Investments, which will give the discount retailer an indirect listing through the merger. “The process is currently on. It will take another two or three more months,” chairman Subramaniam added. Subhiksha plans to expand its retail network to 2200 stores by the end of FY ’09, from 1480 outlets. “We expect the turnover to reach Rs 4,500 crore this financial year from Rs 2,300 crore in the last fiscal,” he said. Source: The Times of India