Retailer Shoppers Stop eyes Rs 200 crores from Hypercity stake sale

By

Maverick Martins

Published
Dec 21, 2016

Indian fashion retailer Shoppers Stop is planning to raise Rs 150-200 crores by selling 10 to 15% of its stake in Hypercity by end of the current financial year, according to a report in the Financial Express (FE).

Govind Shrikhande, managing director, Shoppers Stop, told FE, “Around Rs 150 crore to Rs 200 crore will be raised for HyperCity before March 2017. We have not yet decided the exact route of fund raising but a stake sell is not ruled out.”

If Shoppers Stop manages to raise the above amount the company’s valuation is likely to rise to Rs 1,500-Rs 2,000 crore.

HyperCity is a supermarket chain which currently operates 20 stores throughout India with focus on food, home and fashion. Hypercity stores range from 20,000 sq ft to as high as 50,000 sq ft. Shoppers Stop has 51% stake in HyperCity, the hypermarket format, while K Raheja Corp holds the remaining 49%. Shoppers Stop acquired the 51% stake in Hypercity in 2010.