what you all think about the new acquisition? My few questions and points; Also add more information for learning purpose.
Its very good deal and bargain, but inorganic growth of this extent is really required (already many in past)?
Debt on FRL book is not significant (265 cr), but the equity dilution, money movement(155cr) & margins will affect few quarter results(how long?).
Mr Biyani expecting about 15-16% contribution from hypercity in 12 months and going to achieve 35% in FBB business in those stores later years.
Hypercity stores are in very good locality, can yuo confirm? is it going to help them significantly?
Mr Biyani wants to reduce the debt but in this deal i feel 70% deal in equity was good deal and this will not affect his plan,
Whats the amount required for the working capital in these stores for both hypercity products & bigbazar?