Shopper’s Stop plans Rs500-cr rights issue

Shopper's Stop plans Rs500-cr rights issue

New Delhi: Shopper’s Stop Ltd. is planning a rights issue of up to Rs500 crore ($125 million) to help fund a planned expansion, Managing Director B.S. Nagesh said on Friday.

The company plans to build new stores, which will increase its total retail area to 5.5-6.0 million square feet by 2010/11 from 1.2 million square feet now.

“The total requirement will be met by internal accruals, debt and rights issue. Rights issue can go up to Rs500 crore," he told reporters.

He also said the company had bought 19% of HyperCity Retail (India) Pvt. Ltd, and had the option to increase its stake to 51% of the firm.