Pantaloon raises Rs 200 cr from BCCL
After signing a Rs 1,600-crore deal with Aditya Birla Nuvo, Pantaloon Retail, India’s largest retailer, on Thursday said it would raise Rs 200 crore by issuing shares to Bennett, Coleman & Co. Ltd (BCCL).
Pantaloon will issue 8.16 million shares to BCCL at Rs 245 apiece on a preferential basis. After the transaction, BCCL stake in the company will go up from 2.12 to 5.8 per cent, while promoters’ stake will come down by 1.6 per cent to 43 per cent.
Pantaloon said it would change the name of the company to Future Retail India Limited. It said it was issuing 800 optionally fully convertible debentures to Aditya Birla Nuvo and its unit Peter England Fashion and Retail to raise Rs 800 crore.
On April 30, Future Group had announced hiving off apparel stores chain ‘Pantaloon' from Pantaloon Retail India Ltd and selling up to 50.01 per cent stake in the format to Aditya Birla Nuvo for Rs 800 crore. In addition, Aditya Birla Nuvo will also take care of Rs 800 crore worth liability of Pantaloon Retail India.
As a part of the deal between the two companies, the Pantaloon format will be demerged from Pantaloon Retail, a listed entity on the Bombay Stock Exchange (BSE) and the National Stock Exchange.
An extraordinary general meeting of the company will be held on May 30 at Mumbai for obtaining shareholders' approval for the preferential issue of the equity shares and debentures.
The Pantaloon Retail India stock closed at Rs 184.85, up 1.01 per cent, on the BSE.
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