Shoppers' Stop may up stake in Crosswords

Retail chain Shoppers' Stop is planning to increase its stake in Crosswords bookstores from the present 51 per cent and also a controlling 51 per cent stake in food and grocery retail company Hypercity Retail (India).

B S Nagesh, managing director said, "We have the option of acquiring the remaining 49 per cent from ICICI Trusteeship Services by June 30th." However, he refused to divulge the consideration for buying out the stake.

The company acquired Crosswords from India Book House in partnership with ICICI. Shoppers' Stop acquired a majority stake for Rs 13.75 crore in 2000. Crosswords has 22 stores spread across key cities in the country and retails in books, music and stationery.

Nagesh added that Shopper's Stop has the option to acquire 51 per cent in Hyper City any time before December 31, 2008, at a price determined at that time.

Hypercity Retail has identified four properties and the first hypermarket will be opened by the first quarter of 2006.

The promoters, K Raheja Corp group, will be subscribing to 1.19 lakh equity shares of the IPO. The company will be offering 6.94 lakh equity shares, through fresh issue, of Rs 10 each through the book built process.

The offering, which will be priced between Rs 210 and Rs 250 a share, will open on April 27 and close on May 3. Post issue, the promoters would hold 67.09 per cent in the company.

Two lakh shares will be reserved for employees, 33.33 lakh shares have been reserved for institutional buyers,8.33 shares for non-institutional investors and 13.88 lakh shares for the public. Shopper's Stop operates 16 stores with an aggregate area of 7.52 lakh square feet across the country.