IN A move to further accelerate its growth plans, Subhiksha, a major food and grocery discount retailer, is acquiring a majority stake in Chennai based listed company, Blue Green Constructions and Investments Limited (BGCIL).

The respective Boards of Subhiksha and BGCIL are also meeting on Monday (June 30) to consider a merger of the two companies. The merged entity will be called Subhiksha Limited and is expected to list its shares on National Stock Exchange/Bombay Stock Exchange (NSE/BSE) apart from MSE where the shares are currently listed.

R Subramanian, the promoter of Subhiksha said, "this transaction will ensure that Subhiksha has access to capital and will continue to be on the fast track of growth. It will also enhance value for our stakeholders and help us achieve our objective of becoming a US$ five billion company."

Apart from food and grocery, Subhiksha is also India’s largest mobile retailer.

"We are planning an entry into consumer durables to further enhance Subhiksha’s value proposition to the Indian consumer. The company plans to have two million square feet of retail space in this segment in the next year," added Subramanian.