Detailed Summary

Stock Symbol: SHOPERSTOP

Nature of the Event

This is a regulatory disclosure filed under Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. It pertains to an investment by Shoppers Stop Ltd in its wholly owned material subsidiary, Global SS Beauty Brands Limited (GSSBBL), by way of subscription to preference shares on a rights basis.

Key Quantitative Figures and Dates

  • Investment Amount: Rs. 10,00,00,000 (Rupees Ten Crores Only) invested on October 26, 2026.
  • Instrument: Subscription to 1000 Non-Cumulative Optionally Convertible Preference Shares (NOCPS) of face value Rs. 1,00,000 each, issued at par.
  • Total Investment: With this tranche, the overall investment in preference share capital of GSSBBL reaches Rs. 135 Crores.
  • Previous Approval: The Board of Directors had approved an additional investment of up to Rs. 40 Crores in tranches, as communicated on May 05, 2026.
  • Allotment Timeline: Allotment of NOCPS is expected to be completed within 15 working days from October 26, 2026.

Parties Involved

  • Investor: Shoppers Stop Ltd
  • Target Entity: Global SS Beauty Brands Limited (GSSBBL), a wholly owned material subsidiary incorporated on December 08, 1995.

Purpose and Rationale

The investment is intended to fund the growth and business expansion of GSSBBL, which is in the expansion phase. The funds will be used for proposed expansion plans and working capital requirements. GSSBBL operates in the beauty retail sector, combining premium brands, immersive retail formats, and digital-first engagement.

Financial and Capital Structure Impact

  • Consideration: Cash consideration.
  • Cost of Acquisition: Rs. 10 Crores.
  • Shareholding Details:
  • Pre-acquisition: Shoppers Stop Ltd held 4,99,994 equity shares (remaining six held by nominees) and 12,500 preference shares, with 100% shareholding and control.
  • Post-acquisition: Equity shares remain unchanged at 4,99,994, preference shares increase to 13,500, maintaining 100% shareholding and control.
  • Financial Impact: The investment enhances the preference share capital; no dilution or change in control occurs.

Operational and Background Details

  • GSSBBL Business: Engaged in wholesale and retail distribution of beauty products and operation of specialty boutique beauty stores, with presence in India.
  • Turnover History:
  • FY 2023-24: Rs. 95.73 Crores
  • FY 2024-25: Rs. 220.02 Crores
  • FY 2025-26: Rs. 379.75 Crores
  • Related Party Transaction: This investment is classified as a related party transaction due to GSSBBL being a wholly owned subsidiary. Arm's length principles are not applicable as per Regulation 23(5) of SEBI Listing Regulations, and no separate Audit Committee approval is required.

Additional Information

  • The disclosure is made to the BSE Limited and the National Stock Exchange of India Limited.
  • The annexure provides detailed responses to the SEBI-prescribed format for acquisition disclosures.