Pantaloon Retail India allots debentures to Aditya Birla group company, raises Rs 800 crore

NEW DELHI: Pantaloon Retail India (PRIL), which has agreed to sell majority stake in flagship Pantaloon stores to Aditya Birla group, today said it has raised Rs 800 crore through allotment securities to a firm belonging to the latter.

In a filing to the BSE, PRIL said it has alloted 800 optionally fully convertible convertible debentures (OFCDs) to Peter England Fashions and Retail Ltd on June 14.

PRIL said OFCDs have been allotted for Rs 1 crore each on a preferential basis.

The issue is part of a Rs 1,600 crore deal between Aditya Birla Nuvo Ltd (ABNL) and PRIL, wherein the former will acquire majority stake in the latter's apparel store chain 'Pantaloon'.

In an announcement on April 30, PRIL had said that ABNL will subscribe to debentures amounting to Rs 800 crore issued by PRIL and on completion of the demerger process, the debentures will convert into equity in the demerged entity of the Pantaloon format.

As per the deal, ABNL will also take care of Rs 800 crore debt of Pantaloon.

The Pantaloon format will be demerged from PRIL, a listed entity on the BSE and National Stock Exchange.

PRIL's scrip closed at Rs 168.50 per share, up 2.21 per cent from the previous close on the BSE.