The Hindu : Business : Inox Leisure's expansion plan

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Friday, Jan 27, 2006

Business

Business

Inox Leisure's expansion plan

Corporate Reporter

Issue price band fixed at Rs. 100-Rs. 120

CHENNAI: Inox Leisure, which operates a chain of eight multiplexes in seven cities, is entering the capital market jon Thursday with a public issue of 1.65 crore equity shares of Rs. 10 each. The price band has been fixed between Rs. 100 and Rs. 120. The proceeds from the issue will be utilised to fund setting up of new multiplexes at a capital of Rs. 110 crore.

The offer of equity share consists of a fresh issue of 1.20 crore equity shares and an offer for sale of 45 lakh equity shares by the promoter, Gujarat Fluorochemicals. The issue will close on February 2.

Addressing presspersons here on Tuesday, Deepak Asher, director, said the company's growth has been amply aided by an unprecedented boom in organised retailing. According to industry estimates 50 million sq. ft of quality space is under development and over 300 malls are likely to be set up in the next two years. To take advantage of the retail boom, Inox has entered into an alliance with the Pantaloon group, which provides preferential access to all real estate developments that the Pantaloon group takes up to set up its retail chain, Mr. Asher said.

As part of the expansion, the company has identified key locations in Chennai, Hyderabad, Visakhapatnam, Jaipur, Kolkata, Bangalore, Raipur and Darjeeling to set up multiplexes. The company is looking at a mix of owned and leased models.

Inox Leisure, promoted in 1999, has been growing steadily. In the first six months ended September 30, 2005, its turnover was Rs. 50.81 crore and the net profit Rs. 9.73 crore.

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