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Shoppers Stop declines after Monday's rally

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Capital Market
Last Updated : Sep 26 2017 | 10:28 AM IST

Shoppers Stop lost 2.12% to Rs 489 at 10:15 IST on BSE, with the stock sliding on profit booking after Monday's rally triggered by the company's nod to sell 5% of shares to Amazon unit.

Meanwhile, the S&P BSE Sensex was down 112.61 points or 0.36% at 31,514.02.

On the BSE, 1.32 lakh shares were traded in the counter so far, compared with average daily volumes of 33,000 shares in the past two weeks. The stock had hit a high of Rs 540.25 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 483.95 so far during the day. The stock hit a 52-week low of Rs 265 on 28 December 2016.

The mid-cap company has equity capital of Rs 41.76 crore. Face value per share is Rs 5.

Shares of Shoppers Stop had surged 19.97% in a single trading session to settle at Rs 499.60 yesterday, 25 September 2017, after the company announced on Saturday, 23 September 2017 that its board approved a proposal to sell 5% equity in the company for Rs 179.25 crore to the investment arm of the world's largest online retailer Amazon Inc.

Amazon.com NV Investment Holdings, a foreign portfolio investor, will subscribe to about 43.95 lakh shares in Shoppers Stop at Rs 407.78 each on a preferential basis, aggregating to Rs 179.25 crore.

On 20 September 2017, Shoppers Stop announced that its board approved execution of a commercial agreement with Amazon Seller Services. The arrangement would expand the scope of its existing listing arrangement with Amazon India. There is no separate monetary consideration other than the mutual covenants and agreements of the parties. The company does not have any shareholding in Amazon India. Under the commercial agreement, Amazon India does not have a right/entitlement to appoint a director on the board of the company whether as a nominee, an observer or in any other capacity of any nature whatsoever.

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Shoppers Stop reported net loss of Rs 3.72 crore in Q1 June 2017 as against net loss of Rs 13.56 crore in Q1 June 2016. Net sales rose 21.9% to Rs 941.08 crore in Q1 June 2017 over Q1 June 2016.

Shoppers Stop runs department stores that sell apparel, cosmetics and fashion accessories.

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First Published: Sep 26 2017 | 10:13 AM IST

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