Shoppers Stop Invests ₹10 Crore in Subsidiary GSSBL through Preference Shares

Mumbai, September 26, 2025 – Shoppers Stop Limited (NSE: SHOPERSTOP, BSE: 532638) has made an investment of ₹10 crore in its wholly-owned subsidiary, Global SS Beauty Brands Limited (GSSBL) by subscribing to 1,000 Non-Cumulative Optionally Convertible Preference Shares (NOCPS) of face value of ₹1,00,000 each. With this tranche, cumulative investment in the preference share capital of GSSBL has reached ₹95 crore.

Expansion of Beauty Subsidiary

GSSBL, which was incorporated in 1995, deals in the wholesale and retail trade of high-end beauty and personal care products. The company operates distribution channels along with specialty beauty retailing stores. Its top-line growth has been impressive turnover soared to ₹220 crore in FY25 from ₹95.7 crore in FY24 and mere ₹14 crore in FY23.

The new funds will be utilized to augment GSSBL’s retail chain and fund working capital, affirming Shoppers Stop’s intent to enhance its hold in India’s luxury beauty market.

Shoppers Stop’s Larger Strategy

Established in 1991 with headquarters in Mumbai, Shoppers Stop has created a diversified portfolio in fashion, accessories, home furnishings, and beauty. While the core fashion business has experienced margin strain, beauty has been a high-growth segment. In Q1 FY26, beauty retail sales increased 117 % year-on-year to ₹84 crore, underscoring its strategic significance.

The company has made public the plans to double its beauty business within the next several years driven by alliances with international brands and bold store expansion.

Stock Market Performance

Shoppers Stop stocks closed at ₹539.00 on September 26, down 1.38% for the day. The stock has declined close to 39% over the last one year, ranging from ₹467 to ₹909. Its valuation continues to be high with a trailing P/E of around 340×, indicating high investor hopes notwithstanding recent quarterly setbacks.

Outlook

Analysts see the injection into GSSBL as a source of long-term growth, but the premium valuation of the company leaves execution risks uncomfortably high. Successful scaling of GSSBL will be key to reviving overall profitability and warranting market optimism.

REF: https://nsearchives.nseindia.com/corporate/SHOPERSTOP_26092025115225_SE_Intimation_Invt_In_GSSB_1000_NOCPS_26092025.pdf

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