Pantaloon Retail (India) has rallied 6% to Rs 157, extending its Monday’s 7% surge after the US-based private equity fund Warburg Pincus LLC agreed to buy a controlling stake in company’s financial arm Future Capital Holdings for Rs 692 crore.
Warburg Pincus will initially buy 40% of shares from Pantaloon Retail India and its wholly owned subsidiary Future Value Retail, which will be followed by an open offer to buy another 26% in the company at Rs 162 per share.
The deal will give the company much-needed cash to help reduce its debt of Rs 5,500 crore as of March.
A combined 2.74 million shares have changed hands on the counter so far on the NSE and BSE.
