FASHION SHARES JUMP AFTER INDIAN DEAL

SHARES in the online clothing retailer dubbed the Asos of India jumped 62pc after it signed a deal with the owner of the Hindustan Times newspaper.

Koovs will pay for £24m of advertising and marketing from HT Media over two years.

The fashion group will pay for the services in four instalments made up of £16.8m of shares and £7.2m in cash.

Analysts said Koovs was a great opportunity for investors wanting exposure to Indian shoppers.

Jason Streets, analyst at research and consultancy business Hardman & Co, said: ‘Koovs will be an exciting way to play the last big world retail market to move online.

‘The prize, if it gets it right, is a billion-pound company and more. It is likely to be a bumpy, exciting ride, but investors have the reassurance of a highly experienced management team in charge and the backing of a major Indian digital media player.’

Koovs has also secured a £1.5m loan from its director Lord Alli as the group raises up to £50m to grow the business.

The trendy fashion retailer saw shares plunge in March when more than half of its value was wiped out after it revealed plans to ask investors for cash.

The company is worth almost £28m and is listed on the FTSEAIM index.

Koovs’ shares closed up 62.1pc, or 7.05p, at 18.4p, last night.