Shoppers Stop rallies 6pc on fund raising plan

MUMBAI: Shoppers Stop settled 6 per cent higher today after hitting a 52-week high, buoyed by its plan to raise Rs 300 crore through a qualified institutional placements over the next two quarters.

Shares of the retail major Shoppers Stop closed 5.81 per cent up at Rs 505.30 on the Bombay Stock Exchange. The scrip touched a yearly high of Rs 546.60, up 14.45 per cent during the day's trade.

Shoppers Stop vice-chairman BS Nagesh yesterday said the company is in talks with investors and analysts and will make an announcement on the same over the next two months, depending up on the prevailing market conditions.

The company announced its plans to invest Rs 100-120 crore to open 12 more Shoppers Stop outlets and four Hypercity stores in this fiscal. Also, Rs 125 crore will be spent on picking up an additional 32 per cent stake in Hypercity, to have a majority stake of 51 per cent by June 30. Shoppers Stop currently holds 19 per cent stake in Hypercity.

The shares of the company witnessed a similar surge on the National Stock Exchange to close at Rs 507.35,up 5.92 per cent from previous close.