Shares of Shoppers Stop surged over 4 per cent on Thursday on reports that Future Retail is set to acquire HyperCity, a premium chain of 19 hypermarkets from Shoppers Stop for Rs 700 crore.
The stock opened at Rs 500, touched an intraday high of 525 and a low of Rs 500 on the BSE. At 12.30 pm, the shares were trading up by 4.31 per cent at Rs 515.95 on the BSE. On the NSE, the stock was up 4.82 per cent at Rs 516.45.
According to a media report, Kishore Biyani-led Future Retail Ltd is set to acquire Shoppers Stop Ltd’s HyperCity for Rs 700 crore. The deal is expected to combine cash and shares of Future Retail to be given to the shareholders of HyperCity, a subsidiary of the listed Shoppers Stop.
The deal will help Shopper's Stop will reduce debt loads though it would depend on the details of the deal, said Abneesh Roy, Senior Vice-President of Edelweiss Securities.