The Board of Directors of Shoppers Stop Ltd.at its meeting held on Saturday has approved issue of 4,395,925 equity shares of the Company to Amazon.com NV Investment Holdings LLC, at a price of ₹407.78 per share aggregating to ₹179.26 crore on a preferential basis.
NV Investment Holdings LLC, a 100% subsidiary of American e-commerce company Amazon Inc., will purchase 5% stake in Indian brick and mortar retail chain Shoppers Stop Ltd in its effort to expand physical shopping points to boost sales.
"The Company proposes to issue 5% of its post-issue share capital to Amazon.com NV Investment Holdings LLC, which is a limited liability company incorporated in U.S. and registered as category III Foreign Portfolio Investor with SEBI in India".
The stake buy agreement, subject to shareholder and various regulatory approvals, is valued at Rs 180 crore ($27.77 million).
The Amazon affiliate will not take a board position, Shoppers Stop, which operates large department stores and other retail outlets, said in the filing.
"Shoppers Stop is a leading fashion retailer in India".
This partnership will leverage Shoppers Stops brand assortment and Amazon.reach to create a superlative omni-channel retail experience for consumers across the country.
Shoppers Stop's brands such as Stop, Kashish, Haute Curry and RS by Rocky Star are already listed on the Amazon.in since they entered into a partnership in 2016.
Last week, Shoppers Stop said it had entered into an exclusive partnership with Amazon Seller Services, as part of which it would have a flagship store on the Amazon marketplace.
"In addition to the website of the company and its group companies, the company will exclusively sell its products online on the Amazon.in marketplace", it had said.
Commenting on the partnership, Shoppers Stop Customer Care Associate and MD Govind Shrikhande said: "Overall, this alliance with Amazon.in will give a significant fillip to the growth of our omni-channel business".
Amazon Fashion Head Arun Sirdeshmukh said the global e-tailor would continue to invest in India to build customer experience in selection, value and convenience.
The companies will also partner for marketing activities, it added.