Shoppers Stop shares surge over 6% intraday after selling Crossword Bookstores at Rs 41.62 cr valuation- Details here

The shares of Shoppers Stop on Wednesday, September 1, 2021, surged over 6 percent intraday and  was trading around 1.5 percent at 10:51 am after the company said that it has closed the sale of a controlling stake in its wholly-owned subsidiary Crossword Bookstores at a gross business valuation of Rs 41.62 crore.

Shoppers Stop was trading at Rs 244.90 up by 4.20 points or 1.74 percent at 10:51 am on NSE. While it was at Rs 244.50 up by 3.70 points or 1.54 percent on BSE.

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The company is selling the stake in Crossword Bookstores to the owners of Agarwal Business House (ABH), Pune -- Dinesh Gupta, Aakash Gupta and Family.

"Shoppers Stop announced that it has dosed the sale of a controlling stake of its 100% Subsidiary, Crossword Bookstores Limited to M/s. Dinesh Gupta, Aakash Gupta and Family (Owners of Agarwal Business House) (ABH), Pune, pursuant to the share purchase agreement between Shoppers Stop and ABH (the "Agreement") signed on August 31, 2021," the company said in a regulatory filing.

Subject to receipt of necessary consents, Shoppers Stop shall divest 51 percent stake, that is expected to be completed within 15 days, and another 39 percent stake will be divested in the next 12 months, it added.

"The business of Crossword Bookstores is valued at Rs 41.6 crore. Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration," Shoppers Stop said.

The sale of the Crossword Bookstores is consistent with the company's strategic plans, which is to focus on its core business and expand its strategic pillars viz, First Citizen, Private Labels, Beauty and most importantly, its omnichannel business, it added.

"We are pleased to continue the business transformation we set out to accomplish from last March and selling the books' business is an important part of that strategy," Shoppers Stop MD and CEO Venu Nair said.