SRS Ltd IPO to open on Aug 23

SRS Ltd, a company into cinema exhibition, food and retail, today said it is set to tap the capital market with a public issue of 3.5 crore shares of Rs 10 face value each on August 23.

The company aims to raise Rs 225 crore through the sale of a 25.13% stake under the IPO.

"Through this public issue SRS will raise funds to set up cinemas, food courts, restaurants, retail stores, (and a) jewellery manufacturing facility," the company said in a statement.

ICRA has assigned an 'ICRA IPO Grade 3' rating to the offer, which indicates average fundamentals, the statement said.

"With the IPO, we wish to raise Rs 225 crore to fund expansion across business segments," SRS Ltd Chairman and Managing Director Anil Jindal had earlier said.

The company plans to add adding 54 new cinema screens, 33 new food courts, 29 retail stores and 17 jewellery stores to its existing network.

At present, the firm operates 23 SRS Value Bazaar retail stores, 15 food courts and 30 cinema screens in North India.

The company also operates five jewellery retail and wholesale outlets and a jewellery manufacturing unit in Delhi.

SRS is focused on establishing a strong presence across business verticals in tier-II and tier-III cities and towns across the country.

For the fiscal year ended March 31, 2011, the company's total turnover amounted to Rs 2,042 crore.