More Retail Plans ₹2,000 Crore IPO; Aims for 3,000 Stores by 2030. Samara and Amazon-backed company to focus on expansion and debt reduction.
IPO Update: Samara Capital and Amazon-backed food and grocery company, More Retail, is preparing to launch its Initial Public Offering (IPO) in the next 12-18 months. The company aims to raise ₹2,000 crore by selling 10% stake through the IPO. This move is intended to fuel company expansion and strengthen its financial position.
Expansion Plan: 3,000 Stores by 2030
Vinod Nambiar, Managing Director of More Retail, stated that the company will rapidly expand its store chain over the next five years. He said, "We aim to increase the number of our stores to 3,000 by the year 2030."
Currently, More Retail operates 775 stores. This expansion requires significant capital, which will be raised through the IPO.
IPO Timing Dependent on Market Conditions
However, the final timing of the IPO will depend on market conditions. This time, there is a low probability of a significant Offer for Sale (OFS) by existing promoters Samara Capital and Amazon.
Currently, Samara Capital holds a 51% stake in More Retail, while Amazon holds 48%. The remaining stake is held by High Net Worth Individuals (HNIs) and other investors.
Allocation of IPO Funds
More Retail will utilize the funds raised from the IPO primarily for two purposes:
- Funding company expansion
- Repaying existing debt
Currently, More Retail has debt of approximately ₹500 crore, including Term Loans and Non-Convertible Debentures (NCDs). The company plans to reduce this debt by about 50% before the IPO.
Amazon and Samara's Strategy
More Retail's promoters, Samara and Amazon, have been steadily strengthening their foothold in India's food and grocery retail segment. The company focuses on expanding into Tier 2 and Tier 3 cities, where there is significant potential in organized grocery retail.
The partnership with Amazon provides More Retail with support in digital technologies and logistics, leading to enhanced customer experience.
Benefits of the IPO for More Retail
- Securing necessary capital for expansion.
- Strengthening financial position through debt reduction.
- Increasing brand value and market credibility.
- Improving service and expanding network for customers.
