MUMBAI: 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.
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. — IANS
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