Future takes QIP, PE routes to fund Big Bazaar expansion

Future Value Retail Ltd, part of Kishore Biyani promoted Future Group, is planning to invest around Rs 600 crore to expand Big Bazaar, group's flagship hypermarket retail chain. The company had said it is looking at Qualified Institutional Placements (QIP), issuing of warrants, private equity and even going public to fund the proposed expansion.

Speaking to reporters after launching Big Bazaar, which will be largest retail shop in Chennai, spread over in 70,000 sq.ft  Rakesh Biyani, director, Future Group, said that the group has 132 Big Bazaar shops across the country and in the next 18 months another 60 plus will be added, with an outlay of around Rs 600 crore.

“We will fund expansion through QIP and issuing of warrants,” he added. When asked whether the company is planning for private equity or planning to go public, he said, “we are open for all the options,” said Biyani.

“Funding is not main constrain for us, we always open for all the options to fund our expansion” he added.

The company is working hard not increase the price, but due to increase in commodity price their could be some price change in some products, said Biyani.

Commenting on the Bazaar which was inaugurated today, he said, this will be single largest , in a single floor, at Chennai. Of the total 70,000 sq.ft, 25 per cent was reserved for Food Bazaar.