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Analyst meet notes - Provogue India Ltd. 6 May 2008 Source: www.keynoteindia.net
Company background Incorporated in 1997, Provogue is one of India's leading fashion brands. It went public in July 2005 @ Rs150 per share, raising Rs60Cr. Provogue's merchandise is available in over 120 stores and 65 shop-in-shops. Key Takeaways Liberty International Plc. has picked up a 25% stake in Prozone Liberty International, with an investment of Rs220Cr. Liberty International Plc, a FTSE-100 company, has 30 years of experience in retail infrastructure development and management business and assets of GBP 8.2bn. Prozone Liberty International will develop commercial properties including shopping malls. Management Team: Prozone’s board of directors comprises of Nikhil Chaturvedi, Salil Chaturvedi, David Fischel (CEO of Liberty), Rakesh Jhunjhunwala and Nigam Patel. Key Anchors: Shoppers Stop, Lifestyle, Pantaloons, Pyramid Retail, Reliance Retail, PVR Cinemas, Westside, Inox, etc. Projects in pipeline: Provogue plans to complete 12 projects across India in next 5 years. The projects involve setting up malls across tier 2 cities like Aurangabad, Indore, Nagpur and Jaipur. The first project at Aurangabad is likely to be completed by mid next year. Prozone Liberty International has set up 6 subsidiaries as SPVs. Funding Pattern: The total funding requirement for all 12 projects would be about Rs48bn, to be funded through a debt-equity mix of 1:2. It has already raised Rs9.34bn for funding the expansion as follows: - Triangle India Real Estate Fund LLC, co-promoted by Old Mutual Investment Group Property Investment (OMIGPI) and ICS Realty entered into an agreement to invest Rs4.57bn for 27% stake in a step down subsidiary of Prozone. - It has done a preferential allotment of Rs3.14bn @ Rs1100 per share to Altima Partners, T Rowe Price, Genesis, New Vernon, Liberty International, Acacia Partners and Dharmayug Investment. - Further, it has raised Rs1.63bn, by issuing 1.48mn warrants to promoter group at the same price. To read more download full version of Provogue India Ltd. analyst meeting notes. |
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