Ferns 'N' Petals to raise funds through IPO

New Delhi: Florist chain Ferns 'N' Petals is planning to tap the capital market through an initial public offering in 2010 to raise around Rs 250 crore, which could see promoters diluting about 30 per cent stake.

The company will be utilising proceeds from the public issue to fund its expansion in overseas markets, including the US and the UK besides enhancing its delivery services and making it more technologically savvy.

'The IPO would come up by September-October in 2010,' Ferns n Petals Managing Director Vikaas Gutgutia said.

He said the company aimed to raise around Rs 250 crore through the maiden public issues.

He said, 'It is at a very primitive stage but I hope to raise around Rs 250 crore and we may dilute 30 per cent stake. We are still in talks with investors and other firms.'

Gutgutia said the company planned to enhance its presence in the overseas markets. 'We are foraying into the UK and other European markets. We will also focus in South East Asian countries in the next two years,' he added.

The company also has plans to add another 120 outlets across the country in the next two years. It currently has 80 outlets, out of which 20 are company owned.

'We are planning to open 20 outlets this year and for this we will be invest around Rs 1.5 crore. We plan to add another 100 outlets in the next two years,' Gutgutia said.

Talking about the models of the outlets, Gutgutia said, 'Most of our stores are of franchisee model. We plan to stick to that for the outlets we are opening up.'

The company which has a turnover of Rs 100 crore aims to maintain its current growth of 35-40 per cent in another three-four years.