New Delhi, Sep 1 (PTI) Shares of Shoppers Stop on Wednesday erased their early gains and closed nearly 1 per cent lower due to profit-taking.

In early trade, the stock jumped nearly 6 per cent after the company said it has closed the sale of a controlling stake in its wholly-owned subsidiary Crossword Bookstores at a valuation of Rs 41.62 crore.

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The stock, which climbed 5.71 per cent to Rs 254.55 during the day on the BSE, failed to hold on to the gains and closed at Rs 239.20, lower by 0.66 per cent.

On the NSE, it ended at Rs 238.65, a decline of 0.85 per cent after gaining 5.89 per cent to Rs 254.90 during the day.

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Retail chain Shoppers Stop on Tuesday said it has closed the sale of a controlling stake in its wholly-owned subsidiary Crossword Bookstores at a gross business valuation of Rs 41.62 crore.

The stake in Crossword Bookstores is being sold to the owners of Agarwal Business House (ABH), Pune -- Dinesh Gupta, Aakash Gupta and Family, Shoppers Stop said in a regulatory filing.

Subject to receipt of necessary consents, Shoppers Stop shall divest a 51 per cent stake, which is expected to be completed within 15 days, and another 39 per cent stake will be divested in the next 12 months, it added.

"The business of Crossword Bookstores is valued at Rs 41.6 crore. Under the agreement, ABH will take over all the assets and brands. Any liabilities will be adjusted for arriving at the final consideration," Shoppers Stop said.

The sale of the Crossword Bookstores is consistent with the company's strategic plans, which is to focus on its core business and expand its strategic pillars viz, First Citizen, Private Labels, Beauty and most importantly, its omnichannel business, it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)