Shopper's Stop Limited - Securities and Exchange Board of India

OBJECTS OF THE ISSUE
The Objects of the Issue is to raise capital for financing new stores, renovating and expanding some of
our existing stores, and achieve benefits of listing. We believe that listing of our Equity Shares will also
enhance our brand image and provide liquidity to our existing shareholders and to our employees who
hold our stock options under our ESOPs plans.
The gross proceeds of this Issue are estimated at Rs. � million. We intend to deploy the proceeds of the
Issue for financing new stores, renovating and expanding some of our existing stores and meeting the
expenses of the Issue.
The main objects clause and objects incidental or ancillary to the main objects clause of the
Memorandum of Association of our Company enable us to undertake its existing activities and the
activities for which the funds are being raised through this Issue.
Our requirement of funds
Our requirements of funds for setting up of eleven new stores, renovation and expansion of some of our
existing stores over the next three financial years and meeting issue expenses is Rs 1,316 mn as
detailed below:
Activities
Setting up of
new stores
Store Capex & Deposits
for Store Sites
Renovation and
expansion of
existing stores
Already
Total spent upto
Project Cost July 31,
2004
28
August 1,
2004 to
March 31,
2005
Amount for the period (Rs in million)
Balance Amount
Year ending
March 31,
2006
Year ending
March 31,
2007
Amount to
be raised by
way of this
Issue
1,125 38 212 312 562 1,086
156 6 66 84
Issue
Expenses
80
80 -
-
80
Total 1,361 44 358 396 562 1,316
Out of the project cost of Rs.1361 mn., we have already spent Rs.44 mn on store capex, deposits and
renovation and expansion of existing stores out of our internal accruals. The balance fund requirement in
FY05 of Rs.358 mn will be funded through the IPO proceeds and internal accruals.
We intend part financing the above fund requirements of Rs.1316 mn through the proceeds of this Issue.
In case of any shortfall/cost overrun, we intend meeting the funds requirements through our internal
accruals. Our internal accruals (our adjusted restated net profits plus depreciation) for FY 2004 as per our
last audited accounts are Rs 195 mn.
As the above fund requirement and deployment are based on internal management estimates approved
by our Board of Directors and have not been appraised by any bank or financial institution, in case of any
variations in the actual utilization of funds earmarked for the above activities, increased fund deployment
for a particular activity may be met with by surplus funds, if any available in the other activities.
The balance proceeds of this Issue in addition to the abovementioned requirements, if any, will be used
for General Corporate Purposes.
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150