Raheja Group's modern retail major Shoppers Stop Ltd on Saturday announced selling 5 per cent of its equity share (43.96 lakh shares) of Rs 5 face value to e-tail giant Amazon.com at Rs 407.78 per share, aggregating to Rs 179.26 crore on a preferential basis.
"The Board of Directors approved a proposal to issue 5 per cent 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 on the BSE.
The e-tailor's Investment Holdings firm is incorporated in the US and registered as category III Foreign Portfolio Investor with Indian regulator SEBI in India.
"The preferential issue is subject to approval from the company's shareholders and other regulatory and statutory approvals," added the filing.
The company will hold an EGM (Extraordinary General Meeting) on October 18 here for seeking approval of its shareholders for selling the equity stake.
As per a Mint report, Shoppers Stop will use the funds to expand its physical presence and online retail business.
Shoppers Stop has also entered into an exclusive partnership with Amazon Seller Services. As part of the tie up, Shopperâ€™s Stop will have a dedicated microsite on Amazon to sell its private labels and brands that have tied up with Amazon.in. Mint reports that the retailer will sell over 400 brands through this microsite.
Speaking to the Economic Times, Govind Shrikhande, MD, Shoppers Stop said that the tie up will give the company access to various pin codes where it may not be able to open up stores otherwise.
â€śSo that access definitely doubles or triples 100 times. Amazon is able to get a touch and feel for its products through the experience zone. We will leverage each otherâ€™s marketing strengths. And itâ€™s only the starting point. We have multiple things to work out from this point onward and the real action will be after 90 days,â€ť he said.
With inputs from IANS