Pantaloon to spin off mall division

Pantaloon Retail (India), part of the Future group, plans to spin off its 'Central' mall division to create a new company. It also plans to come with an IPO for the new company by the end of 2008.

Talking to Business Standard, Rakesh Biyani, director, Pantaloon Retail, said: "Currently, Central is a division under the Pantaloon Retail, and there are only four Central malls in the country "" Bangalore, Hyderabad, Pune and Vadodara. We will be coming up with a new company for the same and will list it on the stock exchange."

The decision to carve out a subsidiary out of the mall division was taken to unlock the value of the 'Central' mall concept and raise funds through the IPO for future expansion, Biyani said.

However, he did not divulge the exact quantum of fund it planned to raise from the IPO. The three operational 'Central' malls fetch Rs 400 crore.

The company has already initiated the process of creating the subsidiary, which was part of its long-term goal, he added. The company plans to have 11 Central malls.

Responding to recent media reports suggesting that Pantaloon Retail will divest its 49 per cent stake from Planet Retail Holdings, he said the company believes in buying and not selling.

He further hinted at the firm's plans to acquire a travel portal in the country and that the acquisition would be concluded by the year-end.