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ICICI Venture-backed retail chain Subhiksha is expected to come up with an IPO anytime after Diwali, the Indian festival of lights. R Subramanian, managing director of Subhiksha Trading Services Ltd, told CNBC India in an interview that his company will go in for an IPO only if they hit 1,000 stores. "Since we are expected to reach that number by Diwali, we can go in for an IPO any time after that," he said. Since Diwali is in November, Subhiksha's IPO can be expected early next year.

Subramanian told CNBC's rival NDTV Profit: "We will do an IPO next year, we are waiting for us to get to the 1,000 store mark which should be done by this October and then will talk about IPO. ICICI venture invested in us would like an exit at good valuations, we are working towards that."

The promoters led by Subramanian currently hold 65 per cent in the company, while private equity investor ICICI Venture holds 32 per cent, and the employees 3 per cent.

Subhiksha, which has about 800 stores across the country, sells everything from fruits and vegetable to groceries, and from medicines to mobile phones. The 10-year old company registered Rs 803 crore in revenue in 2006-07 and is projected to register sales of Rs 2,200 crore in 2007-08.

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