Online BusinessShoppers Stop to raise Rs 250 cr
Retail chain major Shoppers Stop today said it plans to raise Rs 250 crore to increase stake in its hypermarket chain, Hypercity to 51 per cent, a top company official said today.
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"We have an option to increase our stake in Hypercity from the present 19 per cent to 51 per cent by June 2010 for Rs 250 crore. The proceeds would be raised through a rights issue and warrants," Shoppers Stop President and Chief Executive Officer Govind Shrikhande told PTI.
The decision for the rights issue and warrants will be taken after the postal ballot results on December 15, he said.
The price of warrants to promoters has been fixed at Rs 308, while the company will decide on pricing of the rights issue in the next few days, Shrikhande said.
Shoppers Stop proposes to invest Rs 200 crore for expansion over the next three years.
"We have drawn up investment plans of Rs 200 crore for adding 18 new stores with about 3-million square feet in the next three years. The stores will be opened at Ahmedabad, Amritsar, Mangalore, Mysore, Aurangabad, Chandigarh and other tier II cities," Shrikhande said.
Meanwhile, the company launched Europe"s first denim brand "Mustang" here today.
The company plans to launch more foreign brands in the near future, Shrikhande said, adding the affordable foreign brands have good scope in India.