Shoppers Stop spurts after Amazon picks up 5% stake

Shoppers Stop rose 17.47% to Rs 489.20 at 9:44 IST on BSE after the company said its board agreed to sell 5% of shares to Amazon unit.

The announcement was made on Saturday, 23 September 2017.

Meanwhile, the S&P BSE Sensex was down 210.30 points, or 0.66% to 31,712.14.

On the BSE, 1.03 lakh shares were traded in the counter so far, compared with average daily volumes of 14,000 shares in the past two weeks. The stock had hit a high of Rs 499.70 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 472 so far during the day. The stock hit a 52-week low of Rs 265 on 28 December 2016.

 

Departmental store chain Shoppers Stop said its board approved a proposal to sell 5% equity in the company for Rs 179.25 crore to the investment arm of the world's largest online retailer Amazon Inc.

Amazon.com NV Investment Holdings, a foreign portfolio investor, will subscribe to about 43.95 lakh shares in Shoppers Stop at Rs 407.78 each on a preferential basis, aggregating to Rs 179.25 crore.

On 20 September 2017, Shoppers Stop announced that its board approved execution of a commercial agreement with Amazon Seller Services. 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.

Shoppers Stop reported net loss of Rs 3.72 crore in Q1 June 2017 as against net loss of Rs 13.56 crore in Q1 June 2016. Net sales rose 21.87% 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.

Powered by Capital Market - Live News