The stock hit 52-week high of Rs 510, up 7%, extending its Monday's 6% rally on the BSE.
V2 Retail hit 52-week high of Rs 510, up 7%, extending its Monday’s 6% rally on the BSE, after the company funds affiliated with private equity (PE) firm Lighthouse made an investment of Rs 76 crore in the company.
The board of directors of V2 Retail approved allotment of two million equity shares to India 2020 Fund II (foreign portfolio investor), non-promoter, at a price of Rs 380 per share.
V2 Retail announced on October 16, 2017 investment by India 2020 Fund II, Limited, a fund affiliated with Lighthouse, a middle market private equity firm focused on growth investments in India's consumer sector. The investment will be used to accelerate V2 Retail’s store expansion plans.
For FY17, V2 Retail achieved revenue of approximately Rs 470 crore, representing a CAGR (compound annual growth rate) in excess of 60% over the last five years. Currently, the Company has 44 stores across 13 states in India and targets reaching a store count of 100 in the next two to three years, it added.
India has added more than 400 million consumers into the middle-income bucket over the past 15 years. It is this bucket which is driving consumerism in India and V2 Retail is well positioned to cater to this aspiration which presents a strong tailwind for growth, said Sachin Bhartiya, Partner, Lighthouse Advisors.
V2 Retail is one of the fastest growing retail companies in India and enjoys strong brand equity from customers across segments. The Company offers a portfolio of products, including apparel and life style products.
In past three months, the stock has outperformed the market by surging 110% as compared to 2% rise in the S&P BSE Sensex. Thus far in the calendar year 2017, it zoomed 359% against 23% surge in the benchmark index.
(As published in Business standard on Tue, Octber 17 2017. )