Vishal Retail will sell its retail trading business to Shriram Group and its wholesale division to private equity firm TPG for a combined value of Rs 100 crore.
“The company was not performing well for quite sometime. The market was expecting better valuation than what was offered by the buyers, which led to the fall in the stock,” Geojit BNP Paribas Assistant Vice-President Gaurang Shah said.
In a filing to the stock exchanges, the company said its board has decided to conduct a postal ballot to seek shareholders' approval for the deal.
TPG will buy the wholesale trading, institutional sales and franchise operations of Vishal, while Chennai-based diversified group Shriram will assume control of the retail trading undertaking of Vishal.
Source: Business Standard