Leading fitness chain, Talwalkars Better Value Fitness today said its Rs 78-crore initial public offering (IPO) will open for subscription on April 21 and the price band has been fixed at Rs 123-Rs 128 per share.
"We are growing and will continue to grow to make Talwalkars a strong brand in the market. We will raise around Rs 78-crore from the IPO to expand our fitness business in the country," Managing Director and CEO of the company, Prashant Talwalkar, told reporters here.
The offer consists of a fresh issue of 60.5 lakh shares of Rs 10 each. The total issue represents around 25 per cent of the post-issue capital of the company. The IPO proceeds would be primarily used to set up health clubs (Rs 50 cr) and for repaying loans (Rs 20 crore).
"We have now 58 health clubs in 28 cities across the country. We will set up 27 more health clubs in Tier I and II cities by the end of the current fiscal," Talwalkar said.
The company has grown at CAGR of 80 per cent over the last three years and its sales turnover has gone up from Rs 10 crore in 2006 to Rs 59 crore in 2009.
Its profit has gone up from Rs 42 lakh to Rs 5.68 crore in the same period, the company said in a press note.
"We have built a strong brand equity and market leadership in the fitness industry in India. Our success over the decades leads us to believe that we can replicate our businss model and take our health clubs to other cities as well," he said.