Shoppers Stop sells 5% equity stake to Amazon

Mumbai Sept 24: Raheja Group's multi-brand fashion retailer Shoppers Stop Ltd on Saturday has announced selling 5 percent of its equity share to Amazon. The company has said that 43.96 lakh shares would be sold to e-commerce player . The face value of the share has been fixed at Rs 407.78 and the total deal amount is Rs 179.26.

The company in a regulatory filing to BSE has stated that "The Board of Directors approved a proposal to issue 5 percent 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".



The retail giant also said that "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.

Amazon company has said that "Shoppers Stop is a leading fashion retailer in India. This segment of the market is under-penetrated and unorganized. We see a big potential in Shoppers Stop to disrupt this segment and want to be part of their growth story".