Chennai, Tamil Nadu, India, June 30, 2008: In a move to further accelerate its growth plans, Subhiksha, India’s largest Food & Grocery discount retailer, is acquiring a majority stake in a Chennai Based listed company, Blue Green Constructions and Investments Limited. The respective Boards of Subhiksha and Blue Green are also meeting on Monday to consider a merger of the two companies. The merged entity will be called Subhiksha Limited and is expected to list its shares on NSE/BSE apart from MSE where the shares are currently listed.
R Subramanian, the promoter of Subhiksha said, “This transaction will ensure that Subhiksha has access to capital and will continue to be on the fast track of growth. It will also enhance value for our stakeholders and help us achieve our objective of becoming a US$ 5bn company.”
Apart from Food & Grocery, Subhiksha is also India’s largest mobile retailer.
“We are planning an entry into consumer durables to further enhance Subhiksha’s value proposition to the Indian consumer. The company plans to have 2 million square feet of retail space in this segment in the next year” added Subramanian.
The proposed transaction is subject to all regulatory and other approvals.
