Future Group acquires HyperCity with a deal of Rs.655 crore
By Nabamita Chatterjee | October 06, 2017
This arrangement will further give the Future Retail's flagship retail chain Big Bazaar admittance to a premium brand and pronounced locations in main metros.
Future Retail Limited, the retail conglomerate headed by Kishore Biyani recently acquired HyperCITY, a 19-store network of high-end grocery and merchandise retail, for ₹655 crore from Shoppers Stop Ltd. HyperCITY is 51 percent owned by Shoppers Stop and 14 investors, including members of the RC Raheja family, holding the rest. The companies expect to complete the deal in three to five months, subject to regulatory approvals. The acquisition is part of Biyani’s aggressive expansion strategy. The retailer plans to open 100 Big Bazaar stores over the next three to five years. It’s also looking to double its small-format Easy Day outlets to 1,000 in the year to March and increase the count fourfold in three years, according to its earnings presentation for the quarter ended June. Future Retail in a stock exchange filing on Thursday 5th October said that it will issue up to 93.1 lakh shares to real estate developer K Raheja Corp Group-owned Shoppers Stop and other shareholders at Rs 537 a piece, aggregating to Rs 500 crore. The remaining Rs 155 crore would be paid in cash, according to the filing.