Pantaloon board approves units IPO, raise Rs 1200 cr

New Delhi, Aug 20: Pantaloon Retail India Ltd today said its Board of Directors have approved the Initial Public Offering (IPO) by its unit, Future Capital Holdings Ltd, and also approved raising of about Rs 1,200 crore through equity shares and warrants.

The company plans to issue 40,00,000 equity shares of Rs 500 each aggregating to Rs 200 crore on preferential basis, said a statement.

Pantaloon will also issue 212,00,000 warrants at a price of Rs 500 per warrant aggregating to Rs 1,060 crore to the promoter group, Pantaloon Employee Welfare Trust and select employees of the company.

An Extraordinary General Meeting will be conducted by the company on September 18, 2007 for obtaining shareholders approval.

The Pantaloon board's approval for the (IPO) by Future Capital Holdings Ltd will represent 10 per cent of the post issue capital.

The board has also approved an investment of Rs 325 crores in Pantaloon Future Ventures Ltd, a wholly owned subsidiary, for making downstream investment into Future Ventures India Ltd which has been set up to undertake new businesses, incubation of new ideas and businesses and getting into joint ventures, etc.

UNI