Retail major Shoppers Stop today said it will raise Rs 179.26 crore from Amazon by issuing equity shares, amounting to 5 per cent stake in it, on preferential basis.
The board of directors of the company in its meeting held today approved issue of 43,95,925 equity shares of Rs 5 each at a price of Rs 407.78 per equity share to Amazon.com NV aggregating around Rs 179.26, Shoppers Stop said in a BSE filing.
The company has entered into an agreement with Amazon.com Investment Holdings LLC for the purpose of issuing equity shares on a preferential basis, it added.
The shares will translate to just over 5 per cent stake of Amazon in the company. As on quarter ended June 30, Shoppers Stop's fully paid up equity shares were at 8,35,04,744, according to information available on BSE.
The company said it has called for an ordinary general meeting on October 18, 2017 for seeking approval from its shareholders.
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.
In a separate statement, company said to strengthen their existing ties, Shoppers Stop(SSL) and Amazon Seller Services (ASSPL) have entered into an exclusive partnership for the department store format. As part of the deal, Shoppers Stop will have an exclusive flagship store on the Amazon marketplace.
The two companies have an existing partnership since 2016 under which Shoppers Stop's private and exclusive brands (Stop, Kashish, Haute Curry, RS by Rocky Star,) have been listed on the Amazon marketplace.
Further, Shoppers Stop will now have a flagship store on Amazon.in where it will list its entire portfolio of over 400 across categories such as apparel, footwear, beauty and accessories.
This partnership will leverage Shoppers Stop's brand assortment and Amazon.reach to create a superlative omni- channel retail experience for consumers across the country.
The two companies will also conduct joint marketing efforts and mutually beneficial marketing and promotion activities, it added.
Besides, Amazon experience centers will be created across the physical network of Shoppers Stop stores.
Commenting on the partnership, Shoppers Stop Customer Care Associate & MD Govind Shrikhande said: "Overall, this alliance with Amazon.in will give a significant fillip to the growth of our omni-channel business".
Amazon Fashion Head Arun Sirdeshmukh said the partnership enables Amazon.in to further extend its "leadership on selection in fashion category and offer customers across India fast while it also enables Shoppers Stop to access Amazon.in's nationwide customer base and expand reach in new geographies.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)