Pantaloon to issue Rs 200cr pref shrs to Bennett Coleman
Pantaloon Retail Thursday said its board has passed a resolution to change its name to Future Retail India Ltd.
Moneycontrol Bureau
Pantaloon Retail Thursday said its board has passed a resolution to change its name to Future Retail India Ltd. It will also raise Rs 200 crore via issue of 81,63,265 equity shares at Rs 245 a share on a preferential basis to Bennett, Coleman & Co., the owner of The Times of India newspaper.As of March 31, Bennett, Coleman & Co already held 2.12% stake in Pantaloon Retail.The company will also issue 800 optionally fully convertible debentures (OFCD) at Rs 1 crore per OFCD to Aditya Birla Nuvo Ltd and or its subsidiary Peter England Fashion and Retail. Pantaloon Retail had earlier this week announced Aditya Birla Nuvo, a unit of the Aditya Birla Group, would acquire a majority stake in its Pantaloons retail chain. The new separated unit will eventually become a subsidiary of Aditya Birla Nuvo, whose other subsidiaries include Madura Fashion Lifestyle, which owns brands like Peter England, Louis Phillippe, Van Heusen and Allen Solly.Future Group promoter Kishore Biyani has been looking to reduce huge debt (Rs 5,800 crore as of Dec 31) on Pantaloon Retail's books. Post the demerger, the total debt will reduce by Rs 1,600 crore, it had said earlier.Biyani has had talks with foreign retailers like French supermarket giant Carrefour, to sell stake in the last few years. However, those plans have so far not materialized due to intense political opposition to foreign direct investment in multi-brand retail.The Pantaloons format launched in 1997 and has 65 stores, along with 21 factory outlets. The business is expected to post a turnover of around Rs 1,700 crore by the end of its current fiscal, which ends on June 30.Pantaloon Retail said an extraordinary general meeting of the company will be held on May 30 to obtain shareholders approval for the preferential issue of shares and OFCDs.Panaloon Retail shares closed up 1.1% at Rs 185 on NSE on Thursday.
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