The Biyani family, promoters of Pantaloon Retail (India) Ltd, are considering hiking their stake in the company by about 10 per cent through the preferential allotment route.
The company board has already passed a resolution to issue 40 lakh equity shares of Rs 10 each to the promoters of the company on a preferential basis at a price determined by SEBI guidelines.
The board has also passed another resolution to convert 40 lakh unissued preference shares into equity shares.
In case, the company finally decides to convert the preference capital into equity capital, the promoters themselves are likely to subscribe.
According to Kishore Biyani , managing director of Pantaloon Retail India " This is one of the options available to the company to increase its equity. The board has given me a mandate to explore various options of raising capital and we are looking into other avenues available as well. We have also not ruled out raising of debt for our expansion activities, if necessary.'
The promoters currently hold an equity stake of 42.39 per cent in Pantaloon Retail (India), institutional investors hold 21.1 for the corresponding period last fiscal.
Net sales stood at Rs 176.44 crore as against Rs 135.42 crore in the corresponding period last fiscal. Other income increased from Rs 1.07 crore for the year ended June 30, 2000, to Rs 1.58 crore for the year ended June 30, 2001.
