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, Shoppers Stop said in a filing on Indian stock exchange BSE, has also proposed to hold an extraordinary general meeting of the company on October 18, 2017 to seek approval of the shareholders.
Shoppers Stop, which sells cosmetics to clothing and home appliances at its outlets, will have an exclusive flagship store on Amazon's Indian site where it will retail its entire portfolio of more than 400 brands, the company said.
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 addition to the website of the company and its group companies, the company will exclusively sell its products online on the Amazon.in marketplace", it had said.
It's the first time Amazon has invested in an offline fashion retail in India.
Post allotment of the securities, the investor will have not any special rights under the agreement and will only be entitled to exercise such rights that are exercisable by ordinary shareholders of the company to the extent of its shareholding, Shoppers Stop added.
Inc.is set to buy a 5 percent stake in Indian retailer Shoppers Stop Ltd., as the USA company steps up efforts to gain ground in the fast-growing consumer market.
Shoppers Stop will use the funds to continue expanding physical and online retail businesses, Mint quoted the company's managing director Govind Shrikhande as saying.
"We will also enable Shoppers Stop to access our nationwide customer base and expand reach in new geographies", added Sirdeshmukh. As on quarter ended June 30, Shoppers Stops fully paid up equity shares were at 8,35,04,744, according to information available on BSE.