Shoppers Stop, the CL Raheja group-promoted retailer, today said it had bought another 32 per cent in group company Hypercity Retail for Rs 125 crore.
With this buy, Shoppers Stop’s stake in Hypercity will go up to 51 per cent, making the latter a subsidiary of the company. The buy values Hypercity at around Rs 391 crore.
With the loans and advances Shoppers Stop has lent to Hypercity, its total exposure to the latter would come around Rs 200 crore, the company had told exchanges.
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June 30 was the last day for Shoppers Stop to acquire the stake in Hypercity, according to the company’s earlier resolution.
With the sale, the stake of promoters, mainly CL Raheja and his sons, will come down to 49 per cent from 81 per cent.
Hypercity has seven stores in Thane, Mumbai, Bangalore and Hyderabad and plans to increase the store count to 26 in the next four years.
“Though Hypercity will continue to run as an independent business, its numbers will be reflected in the consolidated balance sheet,” said Govind Shrikhande, president and chief executive of Shoppers Stop, had told earlier.
