Pantaloon Retail to raise Rs 1,500 cr, set up multiple arms

MUMBAI: Kishore Biyani-promoted Pantaloon Retail India Ltd plans to raise about Rs 1,500 crore through a mix of preferential allotment of shares to promoters and private equity funding to fuel its growth plans.

In a major realignment exercise of the BSE-listed entity, the Board of Directors of Pantaloon Retail India (PRIL) proposed to set up multiple subsidiaries to focus on specific business segments.

Following its board meeting here, PRIL is likely to be rechristened as Future Market & Consumer Group Ltd (FMCG Ltd), Future Group founder and CEO Kishore Biyani told PTI today.

"The proposed company, FMCG Ltd, will be the holding company for our two main subsidiaries focusing on fashion and retail. We are proposing to raise Rs 750 crore through private equity funding for these two companies," Biyani said.

Future Group is also proposing to raise Rs 450-500 crore for infusion into the other subsidiaries under FMCG Ltd.

He, however, declined to divulge further details. "We are looking to raise Rs 367 crore through preferential allotment of shares to the promoters in the parent company," Biyani said.