Debt-laden Delhi-based Vishal Retail will sell its retail trading business to Shriram Group of Chennai and the wholesale business, institutional sales and franchise operation to a private equity company, ‘TPG Capital’, with the combined deal totaling to Rs1 billion.
Pertaining to this, the board of retail group has decided to conduct a postal ballot, to seek shareholders’ node for the deal.
Vishal operates retail chains, which include, Vishal, Vishal Retail, Vishal Megamart and Vishal Fashion Mart. The chain was affected drastically due to last year’s economic slowdown and burdened by a debt of Rs 7.3 billion, as it had borrowed money in 2008-09 to widen its operations.
The proceeds from the assets sale will partly meet the debt of Rs 7.3 billion, which was lent to the company by leading bankers in India.