Cupid, Baazar Style shares in focus on warrant conversion; key details

Shares of Cupid Ltd and Baazar Style Retail Ltd are in focus on Monday as the board of Cupid approved the conversion of up to 30,00,000 warrants, in one or more tranches, into an equivalent number of equity shares of Baazar Style Retail Ltd.

In a filing to stock exchanges, Cupid said the board had at its meeting held on January 21 already approved investment in 1,01,00,000 warrants of Baazar Style at Rs 328.25 per warrant, out of which 15,00,000 warrants were converted into equity shares on May 15.

"Accordingly, 86,00,000 Warrants are presently outstanding, out of which up to 30,00,000 Warrants are now proposed to be converted in one or more tranches. The proposed conversion is within the overall 1,01,00,000 Warrants approved by the Board and is at the predetermined price of ₹328.25/- per Equity Share," Cupid told NSE and BSE.

Strategic investment
Cupid said the strategic investment marks an important step in strengthening Cupid’s retail presence and expanding consumer reach. Style Baazar’s established network of over 283 stores will provide a strong platform to scale Cupid’s FMCG product portfolio across key regional markets, it said.

"As the store network expands to over 500 locations within next 3 years, Cupid’s products will be an integral part of that growth, enabling wider availability, improved visibility, and deeper engagement with consumers," Cupid said.

The company said the cost of acquisition would be Rs. 73.86 crore in one or more tranches for conversion of upto 30,00,000 warrants, in one or more tranches, into equivalent number of equity shares.

Baazar Style Retail was incorporated on June 3, 2013. The Company is engaged in the business of fashion retail.

The acquisition will not fall within related party transaction and the promoter group of Cupid does not have any interest in the entity being acquired, Cupid said.