Shoppers Stop Ltd to invest in Pahadi Goodness Pvt Ltd

The Board of Directors of Shoppers Stop Limited ("the Company") at its Meeting held today on July 31,2023 have approved an investment in Pahadi Goodness Private Limited ("Pahadi Local") of upto Rs. 4 Crores (Rupees Four Crores), by way of subscription to 40,000 Optionally Convertible Debentures at face value of Rs. 1000 (Rupees one thousand) each and shall be entering into a subscription agreement with Pahadi Local for the same. The Company shall further have an option to acquire an additional 17.67% of the Equity Capital of Pahadi Local in June, 2025, at a post money valuation of Rs. 20 Crores.

Pahadi Local: is a start-up engaged in the business of manufacturing, distributing, marketing and selling of skincare, wellness and other similar items under the brand name "PAHADI LOCAL". It sources its skincare products from the Himalayas and operates in the "Clean Beauty" space, with products consisting of a range of Oil, Powder, Paste and Mist SKU's. It has its plant in Parwanoo, Himachal Pradesh with an in-house R&D.

Beauty is one of our Strategic Pillar and our vision is to be the "Most Loved Beauty Shopping Destination for Customers". Through this investment, the Company proposes to make a strategic investment in a start-up in the wellness and skin care segment, which is a key category in Beauty strategy. The skin care category is in its infancy and growing rapidly, and this investment will help us to grow the same. This would also enable distribution of Pahadi Local products by the Company (and its wholly owned subsidiary), which are sourced from Himalayas and are natural. This will also achieve our ESG goal i.e. promote MSME and sustainable products.

Through this investment, the Company proposes to make a strategic investment in a start-up in the wellness and skin care segment, which is its stated long-term strategy. The strategic investment would enable distribution of Pahadi Local products by the Company, which are sourced from Himalayas and are natural. The same goes well with the ESG goals of the Company to promote MSME and sustainable products. The object is in-line with the beauty products business of the Company.

Upon conversion of OCD's (subject to achievement of performance KPI's by Pahadi Local) into Equity on or before June 2025, Company shall hold 33.33% of equity capital of Pahadi Local. On failure to achieve performance KPI's, the OCD's shall be redeemed at face value in December, 2025.

Further on exercise of addition option to purchase additional 17.67% of Pahaldi Local in June, 2025, the Company shall hold 51% of equity capital of Pahadi Local.

Shares of Shoppers Stop Limited was last trading in BSE at Rs. 797.50 as compared to the previous close of Rs. 784.95. The total number of shares traded during the day was 1914 in over 267 trades.

The stock hit an intraday high of Rs. 808.00 and intraday low of 781.45. The net turnover during the day was Rs. 1517539.00.

Source : Equity Bulls

Keywords

ShoppersStop INE498B01024 Investment PahadiGoodness