Shoppers Stop surges 14 per cent to hit year high on fund raising plan

MUMBAI: Shoppers Stop on Wednesday soared over 14 per cent to an year high in early trade after it proposed to raise Rs 300 crore through a qualified institutional placement ( QIP) over the next two quarters.

Shares of the company jumped 14.45 per cent to hit a 52-week high of Rs 546.60 a piece on the Bombay Stock Exchange.

The scrip was trading at Rs 524.10, up 9.75 per cent, on BSE at 1248 hrs.

Shoppers Stop's vice-chairman BS Nagesh yesterday said that the company is in talks with investors and analysts and will make an announcement on the same over the next two months, depending upon 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.

Witnessing a similar upsurge on the National Stock Exchange, the scrip was trading at Rs 525.45, up 9.70 per cent.