 "Shoppers Stop, Future Retail rally by up to 9% on HyperCity deal")
Shares of Shoppers Stop and Future Retail rallied by upto 9% on BSE after the Kishore Biyani-led Future Retail said it would buy Shoppers Stop-owned HyperCity for Rs 911 crore.
Shoppers Stop hit a fresh 52-week high of Rs 552, rallied 9% on BSE in intra-day trade, and Future Retail surged 6% to Rs 559 in early morning trade.
“The board of directors of Shoppers Stop, at its meeting held on Thursday, October 5, 2017, has approved sale of 77.16 million equity shares of Rs 10 each, constituting 51.09% of the paid up share capital of HyperCity Retail (India); (HyperCity / subsidiary company) to Future Retail,” Shoppers Stop said in a statement.
The takeover value of Rs 911 crore includes Rs 655 crore of stock and cash, remaining being debt. The deal will be funded through share and cash as part of which the seller will get about two per cent stake (9.31 million shares) in Future Retail.
“The acquisition would result in further consolidation in the business of Future Retail and increase its foothold in the hypermarket business,” Future Retail said in its communication to exchanges.
At 09:33 AM; Shoppers Stop and Future Retail erase early morning gains, trading 3.5% higher at Rs 525 and Rs 546, respectively.
Shoppers Stop hit a fresh 52-week high of Rs 552, rallied 9% on BSE in intra-day trade, and Future Retail surged 6% to Rs 559 in early morning trade.
“The board of directors of Shoppers Stop, at its meeting held on Thursday, October 5, 2017, has approved sale of 77.16 million equity shares of Rs 10 each, constituting 51.09% of the paid up share capital of HyperCity Retail (India); (HyperCity / subsidiary company) to Future Retail,” Shoppers Stop said in a statement.
The takeover value of Rs 911 crore includes Rs 655 crore of stock and cash, remaining being debt. The deal will be funded through share and cash as part of which the seller will get about two per cent stake (9.31 million shares) in Future Retail.
“The acquisition would result in further consolidation in the business of Future Retail and increase its foothold in the hypermarket business,” Future Retail said in its communication to exchanges.
At 09:33 AM; Shoppers Stop and Future Retail erase early morning gains, trading 3.5% higher at Rs 525 and Rs 546, respectively.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%