Shopper’s Stop puts planned rights issue on hold

Shopper’s Stop puts planned rights issue on hold

Mumbai: Retail firm Shopper’s Stop has put its proposed rights issue on hold as there was no requirement to raise funds, a senior official said on Wednesday.

“As of now the rights issue we had planned is not happening....whenever we have requirement of money for expansion we will appproach the capital market," B.S. Nagesh, vice-chairman, told reporters on the sidelines of a conference.

The firm had earlier planned to raise between Rs3-5 billion via the rights issue, he said.

The company plans to fund immediate expansion through internal accruals, he added.

Nagesh also said he expects same store sales, a key indicator of growth of retailers, to be flat-to-positive in the next six months.

For FY10, the firm is investing Rs350-400 million to add four more Shopper’s Stop stores, Nagesh added.