Pantaloon to divest 24pc stake in subsidiaries, raise Rs 500 cr

New Delhi, Aug 24 (UNI) Pantaloon Retail India Ltd today said its Board of Directors has approved a proposal to divest up to 24 per cent of its stake in its subsidiaries, thereby raising funds upto Rs 500 crore.

Besides, the board approved a plan to raise another Rs 260 cr through options including 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.

The options also include an issue of 12,12,480 warrants at a price of Rs 1,635 per warrant that aggregate to Rs 198.24 crore to promoters and their associates with a choice to the warrantholders to acquire same number of equity shares within a period of 18 months.

The company said Extraordinary General meeting will be held on September 22, 2006 for obtaining shareholders approval.

UNI SBA DKS RN1842