Shoppers Stop deal to buy 32% stake in Hypercity in final stages

Shoppers Stop is in the final stages of buying another 32 per cent stake in group company Hypercity Retail.

Shoppers Stop will pay Rs125-crore for the extra stake, valuing Hypercity at Rs391-crore. It already holds 19 per cent in Hypercity. After the purchase of this stake, Hypercity will formally become a 51 per cent subsidiary of Shoppers Stop.

Currently, the promoters of Hypercity, mainly C L Raheja and his sons, own the other 81 per cent in Hypercity. The Rahejas and their group companies also own 68.5 per cent of Shoppers Stop.

With the loans and advances Shoppers has lent to Hypercity, it would have put in about Rs200-crore in the latter, after the stake purchase.

Hypercity has stores in Thane, Mumbai, Bangalore and Hyderabad and plans to take the count to 26 in the next four years.