Press Trust of India / Mumbai Jun 28, 2010, 13:35 IST
Pantaloon Retail today said promoters will infuse Rs 400 crore in the company in lieu of convertible warrants issued to them.
The warrants would be issued to promoters' group company, Future Ideas Realtors India Ltd, Pantaloon Retail (India) Ltd said in a filing to the Bombay Stock Exchange.
The shareholders of the company, at its meeting held today, approved allotment of one crore convertible warrants from "time to time" at Rs 400 a piece aggregating to Rs 400 crore, it added.
The option to acquire equity shares could be exercised by the warrant holders at any time within 18 months from the date of allotment of warrants.
"Consent of the company be and is hereby accorded to the board to create, offer, issue and allot from time to time in one or more tranches, one crore warrants to the Future Ideas Realtors India Ltd," the filing said.
Pantaloon Retail added that each warrant will be convertible into one equity share of Rs 2 each at the premium of Rs 398. It, however, did not give details regarding reasons for infusion of the amount.
However, Future Group chief promoter Kishore Biyani had last year said that the company aims to be a Rs 25,000 crore entity by 2013-14, up from around Rs 10,000 crore last year. He had also said that the group aims to add 18 million sq ft of retail space by end of the period.
Pantaloon Retail is the flagship company of Future Group. Biyani could not be reached for his comments.
Meanwhile, in a separate filing to the BSE, Pantaloon added that one of its stakeholders, Mauritius-based Nailsfield Ltd, has increased its stake in the retail firm to 8.17 per cent, from 5.25 per cent.
Nailsfield has purchased 33.40 lakh shares of the company at a value of Rs 17.47 crore in an open market transaction.
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