Anil Ambani’s firms pick up shares in Shoppers Stop

Anil Ambani Group firm, Reliance Capital Asset Management

and Reliance Capital Trustee Company have bought 17.40 lakh shares in retail chain Shoppers Stop for over Rs 51 crores through open market transactions. Reliance Capital Asset Management purchased 10 lakh shares in Shoppers Stop, while Reliance Capital Trustee Company bought 7,40,500 shares of the retail entity, according to the data available with stock exchanges.

The shares were purchased at Rs 295 a piece, valuing the deal to Rs 51.34 crores. Meanwhile, Smallcap World Fund, a shareholder of Shoppers Stop, sold 19,85,925 equities of the company for Rs 295 a piece, translating into a deal worth Rs 58.6 crores. As of March quarter, Reliance Capital Trustee held 24.91 lakh shares or 3.02 per cent stake in the retail firm, while Smallcap World Fund held 23.40 lakh shares or 2.83 per cent holding in Shoppers Stop.

As announced by the retailer earlier, Shoppers Stop’s Q4 consolidated net profit plunged 87.6 per cent from a year earlier because of slow economic growth, high inflation and weak consumer sentiment. Net profits fell to Rs 96 lakh in the three months ended 31 March from Rs 7.72 crore in the year earlier. The company is trying to woo consumers by focussing on private labels that currently include Haute Curry, Live and Stop, customer loyalty programs, social media and initiatives like ‘Makeover Marathon’ to beat the slump.