India's Future Enterprises Ltd. is acquiring Hypercity Retail (India) Ltd., a hypermarket chain majority owned by Shoppers Stop Ltd., for 6.55 billion rupees, according to an Oct. 5 filing to the Bombay Stock Exchange.

Future Retail operates Big Bazaar, Easyday, Nilgiris and Heritage stores, along with the online furniture shop Fabfurnish.com. It plans to pay 5 billion rupees of the transaction by issuing up to 9,310,987 shares to Hypercity's 15 shareholders at 537 rupees per share on a preferential basis, with the remaining 1.55 billion rupees to be paid in cash.

The acquisition is expected to be completed in three to five months, subject to shareholder and regulatory approvals. The board of Shoppers Stop has approved the deal for its 51.09% stake in Hypercity, according to another Oct. 5 BSE filing.

Hypercity, founded in 2004, has a network of 19 stores in India and recorded turnover of 11.91 billion rupees during fiscal 2017, according to the filing by Future Retail.

The chain will become a wholly owned subsidiary of Future Retail once the deal is completed.

As of Oct. 4, US$1 was equivalent to 65.03 Indian rupees.