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Pantaloon plans stake sale through pvt placement, FPO
Country's leading retailer, Pantaloon Retail India said it will raise Rs 958.24 crore through various fund raising programmes in a bid to fund its ongoing expansion plans.
Country's leading retailer, Pantaloon Retail India said it will raise Rs 958.24 crore (Rs 9.58 billion) through various fund raising programmes in a bid to fund its ongoing expansion plans, reports The Economic Times.
The board approved a proposal to raise Rs 500 crore (Rs 5 billion) through divesting the company's 24% stake in its subsidiaries and also gave its nod to raising an additional Rs 260 crore (Rs 2.60 billion) by way of securities.
Pantaloon said it would raise the Rs 260 crore through issue of shares, warrants or other securities on rights or private placement basis to shareholders, the public or qualified institutional buyers, QIBs.
When contacted Pantaloon promoter Kishore Biyani said the funds would be utilised for its expansion purposes.
"We have already spelt out our expansion plans and the funds to be raised will go into meeting the demand."
Pantaloon is planning to raise its current retail space 10-fold from 3.3 million sq feet to 30 million by 2010 - in various formats ranging from value to lifestyle retailing.
At the meeting held today the board also approved the issue of 12,12,480 warrants to the promoters and their associates, at a price of Rs 1,635 per warrant aggregating to Rs 198.24 crore (Rs 1.98 billion). The warrants can be converted into an equal number of equity shares within a period of 18 months from the date of allotment, the company added.
