Garment and apparel retail chain Shoppers Stop today said it has obtained shareholders approval to issue 40 lakh shares by way of qualified institutional placement to garner resources for its expansion plans.
The shareholders also passed a resolution through postal ballot to issue 40 lakh convertible warrants to three promoters Raghukool Estate Development, Capstan Trading and Casa Maria Properties on preferential basis to raise funds for accelerating growth, Shoppers Stop said in a filing to the Bombay Stock Exchange (BSE).
The company intends to raise funds for long-term working capital requirements and to finance investment opportunities in addition to other purposes, it said.
Though the price of warrants to promoters has been fixed at Rs 308, the exact price, proportion, timing and terms of the QIP issue would be decided by the board of directors later.
Raghukool and Capstan would be allotted 13.35 lakh convertible warrants each, while Casa Maria would get 13.30 lakh of the convertible securities, it said.
Shares of the company closed at Rs 367.30, up 0.71 per cent from previous close on the BSE.
