Pantaloon Retail to issue securities on preferential basis

Pantaloon Retail India Ltd has announced that the Board of Directors of the Company at its meeting held on April 13, 2009, inter alia, has approved the appointment of Mr. Shailesh Haribhakti as Chairman of the Board.

The Board approved the Issue of Equity Shares and Warrants on Preferential basis. 1,10,00,000 Equity shares will be issued to the Promoters and their associates at a price of Rs 183/- per share aggregating to Rs 201,30,00,000/-.

41,00,000 Equity shares will be issued to Dharmyug Investments Ltd at a price of Rs 183/- per share aggregating to Rs 75,03,00,000/-

50,00,000 Warrants will be issued at a price of Rs 183/- per share aggregating to Rs 91,50,00,000/- to the Promoters and their associates with an option to the Warrant holders to acquire same number of equity shares within a period of 18 months pursuant to Chapter XIII of Securities & Exchange Board of India (Disclosure & Investor Protection) Guidelines, 2000 relating to Preferential Issues.

The relevant date for the pricing of the aforesaid Issue is April 12, 2009.

An Extraordinary General Meeting of the Company will be held on May 12, 2009 for obtaining shareholders approval for the Preferential Issue of equity shares and warrants to Promoters and investors.

The Board also noted cancellation of balance 1,26,51,944 warrants for which conversion option was not expertise upto April 01, 2009, being the last due date to exercise conversion option.

The stock closed on Monday at Rs.184.70, up by Rs.13.75 or 8.04%. The stock hit an intraday high of Rs.207.80 and low of Rs.176.

The total traded quantity was 519544 compared to 2 week average of 111544.

Source : Equity Bulls

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