Industry

Amazon investment arm picks up 5% stake in Shoppers Stop

Amazon.com NV Investment Holdings LLC, the investment arm of Amazon has picked up 5% stake in brick & mortar retailer Shoppers Stop Ltd for approximately ₹180 crore.

The Board of Directors of Shoppers Stop Ltd. at its meeting held on Saturday has approved issue of 4,395,925 equity shares of the Company to Amazon.com NV Investment Holdings LLC, at a price of ₹407.78 per share aggregating to ₹179.26 crore on a preferential basis.

“The Company proposes to issue 5% of its post-issue share capital to Amazon.com NV Investment Holdings LLC, which is a limited liability company incorporated in US and registered as category III Foreign Portfolio Investor with SEBI in India. This preferential issue is subject to approval from the shareholders of the company and such other regulatory and statutory approvals, as may be required,” Shoppers Stop said in a filing with the stock exchanges.

“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.

Meanwhile Shoppers Stop and Amazon Seller Services Pvt. Ltd. (ASSPL) have entered into an exclusive partnership for the department store format whereby Shoppers Stop will have an exclusive flagship store on the Amazon marketplace where it will list its entire portfolio of over 400 brands across categories such as apparel, footwear, beauty and accessories.

As per the commercial agreement Amazon Experience Centers will be created across the network of 80 Shoppers Stop stores to bring in the touch & feel aspect on Amazon.in’s exclusive assortment.

Govind Shrikhande, Customer Care Associate & Managing Director, Shoppers Stop Ltd. said, “In line with our omni-channel retail vision for the company, we have strengthened our partnership with Amazon.in to deepen our presence in the online space.”


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Printable version | Aug 1, 2021 1:01:27 AM | https://www.thehindu.com/business/Industry/amazon-investment-arm-picks-up-5-stake-in-shoppers-stop/article19743785.ece

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