Pantaloon Retail gets approval for raising Rs 1260 cr

MUMBAI: Pantaloon Retail India, a Future Group Company promoted by Kishore Biyani, on Tuesday said it has received shareholders' approval for raising Rs 1,260 crore through the issue of preferential shares and warrants.

Pantaloon Retail said in a filing to the Bombay Stock Exchange that the shareholders of the company at the Extraordinary General Meeting (EGM) held today unanimously passed the fund raising proposal.

The company would issue 2.12 crore warrants at Rs 500 each aggregating Rs 1,060 crore to the promoter group, Pantaloon Welfare Trust and select employees of the company.

The warrant-holders would have an option to acquire the same number of equity shares in one or more tranches within a period on 18 months from the date of issue.

Further Pantaloon Retail said it would issue 40 lakh equity shares of Rs 2 at a premium of Rs 498 on a preferential basis to private investors, aggregating Rs 200 crore.

The company would issue equity shares to four private investors including Bennett, Coleman & Company Ltd. Earlier last month, the board of directors of the company had approved of the fund-raising plan.