Amazon.com NV Investment Holdings LLC, a 100% subsidiary of American e-commerce company Amazon Inc., plans to buy 5% stake in department chain Shoppers StopBSE -3.39 % for about Rs180 crore, indicating its intention to use physical stores as one of its sales drivers in India.
Shoppers Stop said it has approved issue of 43.9 lakh shares of the company to Amazon.com NV Investment Holdings LLC at a price of Rs407.7 per share on a preferential basis.
The stake buy agreement, subject to shareholder and various regulatory approvals, is valued at Rs 180 crore ($27.77 million). This values Shoppers Stop at roughly Rs 3,600 crore.
ABOUT SHOPPERS STOP
Shoppers Stop is an Indian retailing company promoted by the K Raheja Corp Group. It began in 1991 with its first store in Andheri, Mumbai. Shoppers Stop Ltd has been awarded “the Hall of Fame” and won “the Emerging Market Retailer of the Year Award”, by the World Retail Congress at Barcelona, on 10 April 2008.[3] Shoppers Stop is listed on the BSE and National Stock Exchange of India. As of 2013, Shoppers Stop had 73 stores in India.
Shoppers Stop began by operating a chain of department stores under the name “Shoppers’ Stop” in India. Shoppers Stop has 83 stores across 38 cities in India. It retails clothing, accessories, handbags, shoes, jewellery, fragrances, cosmetics, health and beauty products, home furnishing and decor products.
Shoppers Stop launched its e-store with delivery across major cities in India in 2008 and released an app for smartphones in 2016. This completed the first phase of its omni-channel strategy.