Future Retail seals HyperCity deal for $100 million with Shoppers Stop

By

Maverick Martins

Published
Oct 6, 2017

Future Retail, the flagship arm of Future Group has acquired retail chain Hypercity from Shoppers Stop ltd for Rs 655 crore (approx 100.5 million) in a part cash and part stock deal.
 

The deal is likely to benefit Future Retail as it will help it expand its base across the country. Hypercity, the large scale supermarket chain owned by Shoppers Stop, currently has close to 20 large scale outlets across Indian metros and had posted sales of Rs 1,077 crore (approx $165 million) in the financial year 2016-17.
 
“The board of directors has also approved to issue and allot in aggregate and up to 93,10,987 equity shares of Rs 2 each fully paid up, collectively to the sellers at a premium of Rs 535 per equity share on preferential basis,” Future Retail said in a press statement.

Of the total deal value, Rs 500 crore will come from these shares. The remaining Rs 155 crore will be paid in cash.
 
Future Retail’s profit had jumped 108 percent to Rs 147.85 crore (approx $23.1 million) for first quarter ended 30 June 2017, witnessing an 18 percent rise in income to Rs 4,707.44 crore (approx $737 million).
 
Future Retail currently operates 893 stores across Big Bazaar, FBB, easyday, Foodhall, ezone and Home Town in 246 cities across India and the acquisition of HyperCity will help the firm further consolidate its position in the Indian market.