Raheja Group's multi-brand fashion retailer Shoppers Stop Ltd on Saturday announced selling 5 per cent of its equity share (43.96 lakh shares) of Rs 5 face value to e-tail giant Amazon.com at Rs 407.78 per share, aggregating to Rs 179.26 crore on a preferential basis.
"The Board of Directors approved a proposal to issue 5 per cent or 43,95,925 equity shares on preferential basis to Amazon.com NV Investment Holdings LLC at Rs 407.78 per share aggregating to Rs.179.26 crore," said the company in a regulatory filing to the BSE.
The e-tailor's Investment Holdings firm is incorporated in the US and registered as category III Foreign Portfolio Investor with the Indian regulator Securities and Exchange Board of India (SEBI).
"The preferential issue is subject to approval from the company's shareholders and other regulatory and statutory approvals," added the filing.
The company will hold an EGM (Extraordinary General Meeting) on October 18 here for seeking approval of its shareholders for selling the equity stake.
"Shoppers Stop is a leading fashion retailer in India. This segment of market is under-penetrated and unorganised. We see a big potential in Shoppers Stop to disrupt this segment and want to be part of their growth story," said Amazon in a statement to IANS.
The sale of minority stake will enable Shoppers Stop to have a flagship store on Amazon.in where it will list its portfolio of over 400 brands across categories, including apparel, footwear, beauty and accessories.
"The new partnership will leverage Shoppers Stop's brand assortment and Amazon.in's reach to create an omni-channel retail experience for consumers across the country," said Shoppers Stop in a statement after the regulatory filing.
Shoppers Stop's brands such as Stop, Kashish, Haute Curry and RS by Rocky Star are already listed on the Amazon.in since they entered into a partnership in 2016.
Besides conducting joint marketing efforts and promotion activities, Amazon experience centres will be set up in 80 Shoppers Stop stores across the country to bring in the touch and feel aspect on Amazon.in's assortment.
"In line with our omni-channel retail vision, we have strengthened our partnership with Amazon.in to deepen our presence in the online space," said Shoppers Stop Managing Director Govind Shirkhande in a statement to IANS.
In addition to its shopping site (shoppersstop.com) and mobile app, online shoppers will have an opportunity to experience Shoppers Stop in its exclusive brand store on Amazon.in.
"The new alliance with Amazon.in will give a fillip to the growth of our omni-channel business," asserted Shirkhande.
Amazon Fashion Head Arun Sirdeshmukh said the global e-tailor would continue to invest in India to build customer experience in selection, value and convenience.
"In line with this effort, we have entered into a bespoke partnership which enables two leading brands in the retail sector to draw upon each other's strengths to serve the customer base in India," said Sirdeshmukh.
The partnership will also enable Amazon.in to extend its leadership in the fashion category and offer customers across the country guaranteed delivery on new products and brands.
"We will also enable Shoppers Stop to access our nationwide customer base and expand reach in new geographies," added Sirdeshmukh.
Along with subsidiaries Crossword Bookstores and Hypercity Retail, and joint ventures Timezone Entertainment and Nuance Group, Shoppers Stop operates in 57.38-lakh square feet across the country, retailing through department stores, specialty stores, entertainment zones and large hypermarkets.
--IANS
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