V-Mart Retail Limited

Allocates 674,400 shares to Anchor Investors at a price of Rs 210/- per Equity Share aggregating to Rs. 141.62 Million

New Delhi, January 31^st, 2013: The board of directors of the V-Mart Retail Limited (“V-Mart” / "Company"), in consultation with the Selling Shareholder and the Book Running Lead Manager, Anand Rathi Advisors Limited, has finalized allocation of 674,400 equity shares in aggregate, to Anchor Investors at a price of Rs. 210/- per equity share aggregating to Rs. 141.62 Million.

The total allocation of 674,400 equity shares to Anchor Investors in the following manner:

Sr. No.	Name of the Anchor Investor	No. of Equity Shares Allocated	% of Anchor Investor Portion (%)
1	IDFC Premier Equity Fund	436,304	64.70%
2	Morgan Stanley Mutual Fund A/C Morgan Stanley A.C.E. Fund	238,096	35.30%
	Total	674,400	100.00%

V-Mart Retail Limited is proposing a public issue of 4,496,000 equity shares of face value of Rs. 10 each (“Equity Shares”) for cash at a price of Rs. [—] per Equity Share including a share premium of Rs. [—] per Equity Share, aggregating up to Rs. [—]Million (the “Issue”) comprising of a fresh issue of 2,761,000 Equity Shares by the Company (the “Fresh Issue”) and an offer for sale of 1,735, 000 equity shares by Naman Finance And Investment Private Limited. The Issue will constitute 25.04% of the post issue paid-up capital of the Company.

The Company has decided a price band of Rs 195 to Rs 215 per Equity Share of the face value of Rs 10 each. The Issue will open for subscription on Friday, February 1, 2013 and will close on Tuesday, February 5, 2013.

V-Mart Retail Limited, is one of the pioneers in setting up stores across various small Indian towns and cities including Sultanpur, Ujjain, Motihari (Source: Indian Retail Industry 2012 – CARE Research). V-Mart primarily operate in Tier-II and Tier-III cities, with a chain of “value retail” departmental stores offering apparels, general merchandise and kirana, catering to the entire family. Based in New Delhi, the Company’s operations are spread across northern, western and eastern parts of India.  The Company currently own and operate 62 stores spread across 53 cities and 10 states and union territories, with a total area of 5.06 lac Sq. Ft. In October, 2003 the Company opened its first store by the name of “V-Mart” at Ahmedabad, Gujarat. The company’s stores are located in New Delhi, Gujarat, Uttar Pradesh, Bihar, Punjab, Chandigarh, Haryana, Jammu and Kashmir, Rajasthan and Madhya Pradesh. The average size of the store is approximately 8,000 Sq. Ft.

The Company has established stores in Metro, Tier-I, Tier-II and Tier-III cities which are primarily located as standalone stores in high-street areas and shopping hubs of such cities. The Company follows the concept of “value retailing“ to target the strata of the population belonging to the expanding “aspiring class“ and “middle class“ based on the customer’s socio-economic conditions, purchasing power, demographic details and customer trends. The Company believes its offerings in untapped markets, provide its customers with a different shopping experience, comprising of a vast range of value retail products under a modern ambience and feel of a large retail mall.

The Company proposes to utilize funds, which are being raised through the Fresh Issue, towards (a) opening of 60 new stores; (b) expansion of distribution centers; (c) working capital requirements; (d) general corporate purposes; and (e) meeting the Issue expenses.

The Equity Shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.