Shoppers Stop to raise Rs250 cr

Shoppers Stop to raise Rs250 cr

Mumbai: Retail chain major Shoppers Stop on Tuesday said it plans to raise Rs250 crore to increase stake in its hypermarket chain, Hypercity to 51%, a top company official said.

“We have an option to increase our stake in Hypercity from the present 19% to 51% by June 2010 for Rs250 crore. The proceeds would be raised through a rights issue and warrants," Shoppers Stop president and CEO Govind Shrikhande told PTI.

The decision for the rights issue and warrants will be taken after the postal ballot results on 15 December, he said.

The price of warrants to promoters has been fixed at Rs308, while the company will decide on pricing of the rights issue in the next few days, Shrikhande said.

Shoppers Stop proposes to invest Rs200 crore for expansion over the next three years.

“We have drawn up investment plans of Rs200 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.