Vishal Retail surged 5 per cent in early trade as its board approved an agreement with US-based private equity major TPG in accordance with the corporate debt restructuring (CDR) scheme.
Shares of Vishal Retail were trading at Rs 70, up 4.56 per cent on the Bombay Stock Exchange. The scrip touched a high of Rs 70.25, up 4.92 per cent.
The debt-ridden retailer yesterday said that its board of directors have approved the terms of memorandum of understanding (MoU) with TPG VW Ltd in accordance with corporate debt restructuring (CDR) scheme approved by the lenders of the company
However, it said the terms of the MoU would be subject to negotiation and execution of definitive agreements or documents.
TPG has been linked with the troubled retailer for a possible stake purchase in the past as well.
Vishal Retail Chairman and Managing Director Ram Chandra Agarwal said that he wants to part with his majority stake in the company in order to revive it. He holds around 63 per cent stake in the company.
Vishal Retail has been reeling under a huge debt burden of over Rs 735 crore and had last year halted its expansion plans and closed down some of its outlets.
Shares of the company were quoting at Rs 69.35, up 3.35 per cent on National Stock Exchange.
