Shoppers Stop surges to over 2-1/2-year high

Shares of Shoppers Stop surged to over 2-1/2-year high as Amazon unit has bought 5 per cent stake in the company.

According to Shoppers Stop, Amazon.com NV Investment Holdings LLC will invest Rs 179.25 crore in the company.

The

two companies have also signed an agreement under which Amazon Experience Centres will be opened across Shoppers Stop’s network of 80 stores.

Retailer Shopper's Stop Ltd surged as much as 20 per cent, its biggest intraday percentage gain since July 2009. The retailer's stock climbed to highest since February 5, 2015.

Up to Friday's close, the stock had risen about 44 per cent this year.

On Saturday, the board of directors of Shoppers Stop Ltd had approved the issue of 4,395,925 equity shares of the company to Amazon.com NV Investment Holdings LLC, at ₹. 407.78 per share, aggregating ₹. 179.26 crore on a preferential basis.

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, Shoppers Stop said.

The issuance of shares to Amazon.com NV Investment Holdings LLC is subject to regulatory and shareholders’ approvals.