Convenience store and hypermarket operator Spencer’s Retail is looking to launch an initial public offer (IPO) as it closes on to hitting breakeven, Bloomberg reported quoting the group’s Chairman Sanjiv Goenka.

The retailer has doubled its revenues earned per square foot of retail space in three years to Rs 1,350 a month, which, according to Goenka, is just Rs 100 short of achieving breakeven.

During 2012-13, it registered same store sales growth of over 16 per cent, with an average revenue per square feet of Rs 1,226 per month as against Rs 1,060 in the previous year. Its operating losses came down from Rs 140 crore in 2011-12 to Rs 78 crore in 2012-13. It had net loss of Rs 209 crore on revenue of Rs 1,347 crore.

“The moment Spencer’s turns profitable, we will start the process of demerging or listing… The first seven months of this year, we are at 1,350 rupees a square foot, and this in a depressed market situation. So, we are almost there,” Goenka told the global news agency.

Spencer’s Retail, owned by Kolkata-based R P Sanjiv Goenka Group’s public listed firm CESC Ltd, currently operates 120 stores across the country. The group has businesses ranging from power generation to software training.

The proposed listing of the retail chain will help it augment and strengthen its presence in the country, which is poised to see global players come in after the Indian government relaxed FDI norms in multi-brand retail.

UK retail major Tesco has already submitted its application to initially invest $ 110 million to foray in Indian retail market in partnership with Tata Group's Trent which runs Star Bazaar, a competitor for Spencer’s hypermarket chain.

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