Shoppers Stop gains after board OKs rights issue terms

Shoppers Stop rose 3.32% to Rs 188.25 after the company said its board approved the rights issue price at Rs 140 per share.

The company's board at its meeting held on 13 November 2020 approved rights entitlement ratio at 17 rights equity shares for every 70 equity shares held by eligible shareholders as on the record date of 20 November 2020.

The rights issue will open on 27 November 2020 and it will close on 11 December 2020. The rights issue price is at a 25.63% discount to the ruling market price.

On 16 October 2020, the board of Shoppers Stop had approved a proposal to raise upto Rs 300 crore through rights issue of equity shares of the company.

Shoppers Stop is the nation's leading premier retailer of fashion and beauty brands established in 1991. Spread across 89 department stores in 44 Cities, the company also operates premium home concept stores (11 stores), 132 Specialty Beauty stores of M.A.C, Est Lauder, Bobbi Brown, Clinique, Smash box, Jo Malone and Arcelia, occupying an area of 4.5 million sq. ft.

The company reported consolidated net loss of Rs 97.70 crore in Q2 September 2020, higher than net loss of Rs 8.18 crore in Q2 September 2019. Net sales slumped 65.7% to Rs 296.98 crore in Q2 FY21 as against Rs 866.48 crore in Q2 FY20.

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