Shoppers Stop rose 1.62% to Rs 244.70 after the company sold its controlling stake in Crossword Bookstores to the owners of Agarwal Business House (ABH) for approximately Rs 41.62 crore.
Shoppers Stop announced that it has dosed the sale of a controlling stake of its 100% subsidiary, Crossword Bookstores to Dinesh Gupta, Aakash Gupta and Family (owners of Agarwal Business House) (ABH), Pune, pursuant to the share purchase agreement between Shoppers Stop and ABH signed on 31 August 2021. The business of Crossword Bookstores is valued at Rs 41.6 crore. Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration."The sale of the Crossword Bookstores Is consistent with the company's strategic plans, which Is to focus on its core business and expand its strategic pillars viz, First Citizen, Private Labels, Beauty and most importantly, its Omnichannel business, which has grown more than 3 times in the last one year," Shoppers Stop said in a statement.
Subject to receipt of necessary consents, Shoppers Stop will divest 51% stake (expected to be completed within 15 days) and another 39% in the next 12 months.
On a consolidated basis, Shoppers Stop's net loss stood at Rs 104.89 crore in Q1 FY22 as compared to a net loss of Rs 120.25 crore in Q1 FY21. Net sales surged 269.50% to Rs 205.23 crore in Q1 FY22 as against Rs 55.55 crore in Q1 FY21.
Shoppers Stop is a premier retailer of fashion and beauty brands. Spread across 83 department stores in 44 cities, the company also operates premium home concept stores (11 Stores), 127 Specialty Beauty stores of M.A.C, Estee Lauder, Bobbi Brown, Cllnique, Smash box, Jo Malone and Arcelia and 26 Airport doors, occupying an area of 4.4M sq. ft.
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