Pantaloon Retail India (PRIL) today said it has alloted 800 optionally fully convertible debentures (OFCDs) on a preferential basis to Peter England Fashions and Retail Ltd for Rs 800 crore.
In a filing to the BSE, PRIL said OFCDs have been allotted to the Aditya Birla Nuvo Ltd (ABNL) firm for Rs 1 crore each.
In an announcement on April 30, PRIL had said that ABNL will subscribe to debentures amounting to Rs 800 crore issued by PRIL and on completion of the demerger process, the debentures will convert into equity in the demerged entity of the Pantaloon format.
The issue is part of a deal between ABNL and PRIL, wherein the former is acquiring majority stake in the latter's apparel store chain 'Pantaloon'.
The Pantaloon format will be demerged from PRIL, a listed entity on the BSE and National Stock Exchange.
ABNL will also take care of Rs 800 crore debt of PRIL.
PRIL's scrip closed at Rs 168.50 per share, up 2.21% from the previous close on the BSE.