Large-format retail chain, Shoppers Stop, plans to raise Rs 300 crore via a rights providing.
The Ok Raheja Corp-promoted firm joins retail sector friends Aditya Birla Fashion and Retail (ABFRL) and Arvind Fashions in elevating capital from current shareholders within the wake of the covid-19 pandemic, which upended the retailing enterprise.
ABFRL and Arvind had raised Rs 995 crore and Rs 400 crore, respectively in July this 12 months.
Shoppers Stop’s proper issue will stay open for subscription between November 27 and December 11. Existing shareholders holding 70 shares can be eligible to apply for 17 new shares within the rights issue at Rs 140 apiece.
Shares of Shoppers Stop gained 2.58 per cent to finish at Rs 186.90 per share on the BSE. The rights issue worth is 25 per cent under Friday’s shut, which analysts say would encourage current traders to take part.
The promoter holding in Shoppers Stop is at the moment at 63.9 per cent.
Many corporations have raised contemporary capital this 12 months to pare their debt or to restore the injury brought about to the enterprise by the covid-19 pandemic. The retail sector particularly has been severely hit with many bodily shops completely shutting due to challenges round pay leases and workers salaries. Offline retailers like Shoppers Stop are beefing up their on-line presence aiming to faucet into the high-growth alternative.
“Online fashion has a $6 billion market size, which should grow to $19 billion by FY24 with a 57 per cent share from apparel and the remaining from footwear and accessories. While offline fashion should see 12 per cent CAGR, online fashion would see 32 per cent,”mentioned Phillip Capital in a notice on October 26.