Ritu Wears to raise Rs 100 cr via public offer for expansion

Noida-based JDS Apparel, which runs large format store under 'Ritu Wears' brand, today said it plans to raise about Rs 100-crore through an initial public offer (IPO) by next year to fund its expansion.

"We have formed a team within the company, which is scouting for merchant bankers. By October next year, we are hoping to get listed," JDS Apparels Joint Managing Director Sanjay Sahni told PTI.

The company currently operates 10 large format retail stores mostly in Delhi, NCR and Punjab and is planning to set up about 45 more stores by 2015.

Sahni said, the company which had set up its first store in 1971 has been slow on expansion, but now it is looking to raise money to expedite the pace.

"We have not finalised the exact amount of funds to be raised through an IPO, but it will be around Rs 100 crore roughly," he added. The company is expecting to close the current fiscal with a turnover of Rs 225 crore.

Currently, publishing house HT Media Ltd holds about two per cent equity in the company, according to Sahni.

Ahead of its big expansion, the company is also re- positioning its brand and the logo of its stores to 'Ritu Wears Biglife' as a family lifestlye brand.

"We are positioning the brand as a family destination for lifestlye products," Sahni said.

The company's average store size is about 40,000 square feet and houses a large range of products in categories such as apparel, footwear, jewellery, cosmetics, toys, and accessories from brands such as Levi's, Louis Phillipe, Van Heusen, Reebok, Lee, Hugo Boss, Gini & Jony among others.

The company is also a host of in-house brands, which it is willing to launch in the market by setting up stand-alone stores.

"We have some very strong private labels within the stores. Once we are able to reach a scale where it becomes viable to take them out of the stores and sell as exclusive brands, we will do that," Sahni added.