Pantaloon Retail to sell stake for expansion activities

Pantaloon Retail India Ltd has announced that the Board of Directors of the Company at its meeting held on August 24, 2006, inter alia, has approved the following fund raising programmes:

1. Issue of Equity shares / Warrants / FCDs / PCDs and such other securities on Rights / Follow on Issue of shares / Private Placement to Members / Public / Qualified Institutional Buyers (QIBs) aggregating upto Rs 2600 million.

2. Issue of 1212480 Warrants at a price of Rs 1635 per warrant aggregating to Rs 1982.40 million to promoters and their associates with an option to the Warrantholders 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 August 23, 2006.

3. Divest upto a maximum of 24 % of stake of the Company in its subsidiaries and thereby raise funds upto Rs 5000 million.

Further the Company has informed that an Extraordinary General Meeting of the Company will be held on September 22, 2006 for obtaining shareholders approval for the aforesaid purpose.

Source : Equity Bulls

Keywords