Shoppers Stop one of the biggest retail shops in India said Amazon.com NV Investment Holdings LLC will invest Rupees 179.25 crore in the company.
Shoppers Stop Ltd has approved a proposal to sell 5% equity in the company for Rupees. 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’s board has approved issuance of 43.95 lakh equity shares of Rupees 5 each at price of Rupees 407.78 per piece to Amazon.com NV Investment Holdings LLC for Rupees 179.25 crore on preferential basis, Shoppers Stop said in BSE filing.
The board has also proposed to hold an extra ordinary general meeting of the company on October 18, 2017 to seek approval of the shareholders, it said.
The issuance of shares to Amazon.com NV Investment Holdings LLC is subject regulatory and shareholders’ approvals.
Earlier this week Shoppers Stop had entered into a commercial arrangement with Amazon India to sell its products on the latter’s marketplace.
Shoppers Stop, in a BSE filing, had said there is no separate monetary consideration other than the mutual covenants and agreements of the parties.
“In addition to the website of the company and its group companies, the company will exclusively sell its products online on the Amazon.in marketplace,” it had said.
Shoppers Stop will use the funds to continue its investments in expanding physical and online retail businesses, said managing director Govind Shrikhande.
Amazon India will provide marketing, promotion and visibility support to promote the sale of products of Shoppers Stop on Amazon.in.
The companies will also partner for marketing activities, it added.
“The parties will partner on an exclusive basis for creation of Amazon experience centres,” the filing had said.
Arun Sirdeshmukh had said the collaboration will enable the two partners to draw upon each other’s strengths to serve the evolving customer base in India.
“Shoppers Stop will list its entire portfolio of over 500 brands on the Amazon marketplace in an exclusive arrangement. Also, Shoppers Stop Ltd will create exclusive Amazon experience centres for fashion across its physical network,” he had said.