Amazon.com to invest Rupees 179.25 crore in Shoppers Stop

Amazon.com to invest Rupees 179.25 crore in Shoppers Stop

Amazon.com to invest Rupees 179.25 crore in Shoppers Stop

"The Board of Directors approved a proposal to issue 5 per cent or 43,95,925 equity shares on preferential basis to Amazon.com NV Investment Holdings LLC at Rs 407.78 per share aggregating to Rs.179.26 crore", said the company in a regulatory filing to the BSE. 179.25 crore to Amazon NV Holdings LLC, the investment arm of the world's largest online retailer Amazon Inc.in a board meeting held on Saturday.

Shoppers Stop shares had closed 3 percent lower at Rs 418.10 on the National Stock Exchange.

"This deal is beneficial for Shoppers Stop and the stock is bound to appreciate ₹419 level", said Deven Choksey, CEO & MD, KR Choksey Shares & Securities.

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.

Shoppers Stop had last week entered into a commercial arrangement with Amazon India to sell all its private labels and brands on the latter's marketplace.

Shoppers Stop will use the funds to continue expanding physical and online retail businesses, Mint quoted the company's managing director Govind Shrikhande as saying.

The company now commands a market capitalisation of Rs 3,477.46 crore on the BSE, exchange data showed. "There is now no proposal to increase their stake and Amazon as a retailer is not involved", said Govind Shrinkhande, MD at Shoppers Stop.

Amazon India will provide marketing, promotion and visibility support to promote the sale of products of Shoppers Stop on Amazon.in.

Also, their chain will have a flagship store on Amazon.in to list its entire portfolio which will leverage Shoppers Stop's brand assortment and Amazon.in's reach for an omni-channel presence, reported the Economic Times. As on quarter ended June 30, Shoppers Stops fully paid up equity shares were at 8,35,04,744, according to information available on BSE.

"We will also enable Shoppers Stop to access our nationwide customer base and expand reach in new geographies", added Sirdeshmukh.

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