Shoppers Stop Ltd, India’s second largest publicly traded retailer, may raise as much as INR2 billion (USD43 million) from a sale of shares to large investors to gain a controlling stake in a local supermarket chain.
The two-decade-old retailer plans to sell as many as four million shares to select investors. The company also proposes to add 18 stores in as many months as demand rises in the world’s second most populous nation.
"Our cash flow is pretty good and the stores are self- funded," CEO Govind Shrikhande said. "The funds raised would be mainly used to increase our stake" in HyperCity Retail India Pvt to 51 percent from 19 percent, he said.