Vishal Retail gains on takeover buzz

Shares of Vishal Retail moved northwards on reports that private equity fund Texas Pacific Group (TPG) might take over the assets of the retailer that is in the midst of a corporate debt retructuring. On the National Stock Exchange (NSE), the shares were trading at Rs 66.05, up more than five per cent.

According to reports, TPG might convert the retailer, which was founded nearly 24 years ago, into a cash-and carry operation. Reports further suggest that the proposal is being considered by the company's corporate debt restructuring (CDR) committee and it does not involve any fresh infusion of funds into the company.

Vishal Retail entered the capital market in June 2007 with an initial public offer that was subscribed more than 80 times. In 2009, however, the company hit rough weather as sales dipped and accumulated losses went beyond control. Following multiple bank defaults, the company went into corporate debt restructuring in November 2009.