Ecommerce giant Amazon will be investing Rs 179.25 crore in the retail major Shoppers Stop.
Shoppers Stop’s board has approved issuance of 43.95 lakh equity shares, which is 5% of its capital, of Rs 5 each at price of Rs 407.78 per share to Amazon.com NV Investment Holdings for Rs 179.25 crore on preferential basis in a meeting held on Saturday, Shoppers Stop said in a Bombay Stock Exchange 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, which is then subject to regulatory 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 then said that there is no separate monetary consideration other than the mutual covenants and agreements of the parties.
According to the agreement, Amazon India will provide marketing, promotion and visibility support to promote the sale of products of Shoppers Stop on Amazon.
“The parties will partner on an exclusive basis for creation of Amazon experience centres,” the filing had said.
Shoppers Stop also has had an existing partnership with Amazon since 2016 under which Shoppers Stop’s private and exclusive brands (Stop, Kashish, Haute Curry, RS by Rocky Star, etc.) have been listed on the Amazon marketplace.
Published 23 September 2017, 20:48 IST