Shoppers Stop rose 2.03% to Rs 420.45 at 10:35 IST on BSE after the company announced that the board of directors of the company approved execution of a commercial agreement with Amazon Seller Services.
The announcement was made after market hours yesterday, 20 September 2017. The stock had gained 1.63% to Rs 419.65 yesterday, 20 September 2017 ahead of the announcements.Meanwhile, the S&P BSE Sensex was down 145.16 points or 0.45% at 32,255.35. The S&P BSE Mid-Cap index was down 131.89 points, or 0.82%, to 15,967.39.
High volumes were witnessed on the counter. On the BSE, 19,068 shares were traded in the counter so far as against average daily volume of 6,547 shares in the past one quarter. The stock had hit a high of Rs 447.85 and a low of Rs 426.20 so far during the day. The stock had hit a 52-week high of Rs 452.90 on 11 September 2017. The stock had hit a 52-week low of Rs 265 on 28 December 2016.
The stock had outperformed the market over the past one month till 20 September 2017, rising 28.18% compared with 2.78% gain in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 18.64% as against Sensex's 3.52% rise. The scrip had also outperformed the market in past one year, rising 10.71% as against Sensex's 13.59% upmove.
The mid-cap company has an equity capital of Rs 41.75 crore. Face value per share is Rs 5.
Shoppers Stop announced that the board of directors of the company approved execution of a commercial agreement with Amazon Seller Services (Amazon India), which shall come into force and effect from the receipt of all necessary approvals, as envisaged therein.
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.
Separately, the company said that a meeting of the board of directors of the company will be held on 23 September 2017, to consider raising funds through issue of equity shares on preferential basis subject to approval from the shareholders of the company and such other regulatory/statutory approvals, as may be required.
Shoppers Stop reported net loss of Rs 3.72 crore in Q1 June 2017 compared with 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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