Shoppers Stop sells 5% equity stake to

Amazon boxes are seen stacked for

Amazon boxes are seen stacked for

Amazon's investment division will purchase 4.39 million preference shares of Shoppers Stop at Rs 407.78 a piece, the Indian retailer said in a stock exchange filing on Saturday.

"The Company proposes to issue 5% of its post-issue share capital to NV Investment Holdings LLC, which is a limited liability company incorporated in United States and registered as category III Foreign Portfolio Investor with SEBI in India".

The two companies have an existing partnership since 2016 under which Shoppers Stops private and exclusive brands (Stop, Kashish, Haute Curry, RS by Rocky Star, ) have been listed on the Amazon marketplace.

"This deal is beneficial for Shoppers Stop and the stock is bound to appreciate ₹419 level", said Deven Choksey, CEO & MD, KR Choksey Shares & Securities.

The Amazon affiliate will not take a board position, Shoppers Stop, which operates large department stores and other retail outlets, said in the filing.

The proceeds of the deal will be used to expand Shoppers Stop's physical footprint, said Govind Shrikhande, the company's managing director.

"Shoppers Stop will list its entire portfolio of over 500 brands on the Amazon marketplace in an exclusive arrangement".

Amazon Fashion Head Arun Sirdeshmukh said the global e-tailor would continue to invest in India to build customer experience in selection, value and convenience.

Amazon India will provide marketing, promotion and visibility support to promote the sale of products of Shoppers Stop on "Also, Shoppers Stop Ltd will create exclusive Amazon experience centres for fashion across its physical network", he had said. As on quarter ended June 30, Shoppers Stops fully paid up equity shares were at 8,35,04,744, according to information available on BSE.

The company now commands a market capitalisation of Rs 3,477.46 crore on the BSE, exchange data showed. Shoppers Stop also owns HyperCity grocery chain and CrossWord Bookstores.

Latest News