May 02, 2012, 02.43 PM | Source: Moneycontrol.com
Future Group, in an announcement made to the exchange, said it intends to spin-off Pantaloon Retail from Pantaloon Retail India Limited.
On completion of the process, the demerged entity will automatically get listed on the NSE.
The group also announced that the demerged entity will invite Aditya Birla Nuvo Limited (ABNL) to invest Rs 800 crore via debentures of PRIL. The debentures will get converted into equity in the demerged entity of the Pantaloon format. The comapny expects to reduce its debt by Rs 1600 crore post demerger.
The Pantaloons format, launched in 1997, has 65 stores in 35 cities along with reverse logistics chain Pantaloons Factory Outlet that has 21 stores. These operate through a combined retail space of over 2 million square feet.