Premji buys 10% in Subhiksha Trading

WIPRO chairman Azim Premji has picked up a 10% equity stake in retail chain Subhiksha Trading for Rs 230 crore. Mr Premji has acquired the stake in his personal capacity through Premji Invest, his private investment arm, sources close to the deal told ET here on Thursday. 

    The stake has been bought from ICICI Ventures at a huge premium. With this, ICICI Ventures' stake in the retail chain will come down to 14%. The closely-held Subhiksha Trading has an equity capital of Rs 32 crore. While 10% of this works out to Rs 3.2 crore, the remaining Rs 226.8 crore has been paid by way of premium. 
    At a time of economic slowdown impacting the growth of organised retail, the move comes as a big boon for the retail biggie, which has been on an expansion spree. In June this year, Subhiksha acquired a majority stake in Blue Green Constructions and Investments, a Chennaibased listed company. Once it completes the listing formalities, Mr Premji would get a 10% stake in the listed entity. 
    Incidentally, Mr Premji also has a stake in another retail major Shoppers' Stop. As of June-end, Mr Premji held 1.51% in Shoppers' Stop. His portfolio includes companies like Himatsingka Seide (3.33%) and Aventis Pharma (1.03%), among a clutch of other firms. 
    At the time of acquiring Blue Green, Subhiksha promoter R Subramanian had told ET: "The acquisition comes to Rs 2.5 crore without any liability. Blue Green has a paidup capital of Rs 5 crore and we will pay 50% to get a majority stake. Its promoters had plans to launch consumer durable stores. But it did not materialise." He had also cited Subhiksha's vision of becoming a $5-billion company. 
    Subhiksha is India's largest supermarket, pharmacy and telecom chain. Started in 1997 as a single store in South Chennai, Subhiksha is now present nationally with a 1,000 outlets. 
    nandini.sivakumar@timesgroup.com 

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