V2 Retail hits 52-week high after investment by PE firm

V2 Retail surged 9.82% to Rs 524.95 at 14:31 IST on BSE after the company announced investment by India 2020 Fund II, a fund affiliated with Lighthouse.

The announcement was made after market hours yesterday, 16 October 2017.

Meanwhile, the S&P BSE Sensex was up 12.01 points or 0.04% at 32,645.65. The S&P BSE Small-Cap index advanced 85.23 points or 0.5% at 17,061.40.

On the BSE, 2.02 lakh shares were traded on the counter so far as against the average daily volumes of 82,475 shares in the past one quarter. The stock hit a high of Rs 537 in intraday trade so far, which is 52-week high for the counter. The stock had hit low of Rs 485 so far during the day. The stock had hit a 52-week low of Rs 94 on 22 November 2016.

The small-cap company has equity capital of Rs 30.92 crore. Face value per share is Rs 10.

V2 Retail said that the investment will be used to accelerate the company's store expansion plans. Lighthouse is a leading middle market private equity firm focused on growth investments in India's consumer sector.

The board of V2 Retail has approved the allotment of 20 lakh equity shares to India 2020 Fund II (FPI), non-promoter at Rs 380 each . The board also approved allotment of 10 lakh equity shares to Ricon Commodities, promoter / promoter group pursuant to exercise of option against 10 lakh convertible warrants at Rs 75 each.

Ram Chandra Agarwal, Chairman and Managing Director of V2 Retail said that the company plans to further penetrate in core markets, such as Bihar and Uttar Pradesh, due to large number of high potential Tier II and III cities, which remain significantly underpenetrated in terms of organized retail.

V2 Retail's net profit rose 85.5% to Rs 8.68 crore on 31.5% growth in net sales to Rs 142.26 crore in Q1 June 2017 over Q1 June 2016.

V2 Retail is one of the fastest growing retail groups in India. The company offers a portfolio of products, including apparel and life style products. It currently operates 44 stores spread across 13 states in India with a total retail area in excess of 0.5 million sq. ft.

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