Shoppers Stop said it has transferred its entire shareholding in subsidiary Hypercity to Kishore Biyani-led Future Retail Ltd.
According to a PTI report: On November 14, the shareholders of K Raheja Corp Group firm Shoppers Stop had approved sale of Hypercity to Future Retail.
“…The company along with other sellers have transferred their entire equity shareholding held in Hypercity to Purchaser (Future Retail) on November 30, received part of cash consideration and share consideration consisting of over 47.56 lakh equity shares of Rs 2 each of Future Retail will be received, once the same are alloted by the purchaser,” Shoppers Stop said in a BSE filing.
Shopper Stop owns 51.09 per cent stake in Hypercity Retail India Ltd (HRIL) and rest is owned by the promoter group and others.
The loss-making Hypercity had a turnover of Rs 1,191 crore in 2016-17.
On October 5, the board of both the companies decided on the transaction and according to the term sheet, Future Retail Ltd (FRL) will allot 93.1 lakh shares with a face value of Rs 2 each to Hypercity promoters, aggregating to Rs 500 crore, on a preferential basis.
On completion of the transaction, Hypercity will become a wholly-owned subsidiary of Future Retail.
Under the deal, the promoters of Hypercity — Shoppers Stop, RC Raheja and his family, CL Raheja and family, Jyoti C Raheja along with Chandru L Raheja and NC Raheja and family and B S Nagesh and family — will exit the company.