Shoppers Stop to open more outlets

Shoppers Stop intends to raise Rs300-crore through a qualified institutional placement (QIP) and increase its stake in HyperCity Retail India Pvt, a super market chain.

It is also planning to invest Rs 100-120 crore to open 12 more Shoppers Stop outlets and four Hypercity stores in this fiscal.

The Hypercity stores would be coming up at Bhopal, Ahmedabad, Ludhiana and Mumbai, Nagesh said. The company plans to increase number of Hypercity stores from 7 to 25 in the next three years and expects them to break-even in FY 2013.

The BSE-listed retail chain of the K Raheja Group, holds a 19 per cent stake in Hypercity. It now intends to up its stake by 32 per cent by the end of this month.

The Board had already approved the buy-out and we will pick-up an additional 32 per cent stake to have a majority stake of 51 per cent in Hypercity by June 30. This buy-out would cost the company Rs125-crore.