Pantaloon Retail to raise Rs 1,260cr

The board of directors of Pantaloon Retail India, which met on Saturday (August 18), approved a proposal to issue 40 lakh equity shares of face value Rs 2 each at a premium of Rs 498, aggregating Rs 200 crore, on preferential basis to private investors.

According to a release issued by the company to BSE today, the meeting also cleared a proposal to issue 2.12 crore warrants at Rs 500 per warrant, aggregating Rs 1,060 crore, to the promoter group, Pantaloon Employee Welfare Trust and select employees of the company.

"The warrant-holders have the option to acquire the same number of equity shares in one or more tranches within 18 months from the date of issue of the warrants," the release said.

An EGM is scheduled on September 18, 2007 for obtaining approval for the proposals.

The board meeting has also given its approval for an initial public offering (IPO) of Future Capital Holdings for 10% of the post-issue capital.

Pantaloon Retail will invest Rs 325 crore in Pantaloon Future Ventures, a wholly-owned subsidiary of the company for making downstream investment in Future Ventures India, which has been set up to undertake new businesses, incubation of new ideas and businesses and getting into joint ventures, the release added.