Pantaloon's debt to come down to Rs 1,900 cr by June quarter

Sale of the company to Aditya Birla Nuvo will transfer Rs 1,600 cr debt to new entity

Pantaloon Retail's total debt will come down to around Rs 2,000 crore-Rs 2,500 crore by the end of June quarter post the completion of transactions including the sale of insurance business and demerger of fashion subsidiary, said a executive with the Future group, the parent of Pantaloon Retail.

Sale of its fashion format Pantaloons to Aditya Birla Nuvo will conclude in the current quarter which will transfer debt of Rs 1,600 crore to the new entity. The demerger and listing of fashion company Future Lifestyle Fashion, which will result in the shifting another Rs 1,200 crore debt to the new company, is likely to take place by June quarter, the executive said. The sale of insurance arm, which will reduce the debt by another Rs 800 crore, is likely to complete by June quarter, he said.

The company's total debt stood at Rs 5500 crore in the quarter ending December 31, 2012.

"By end of the current financial year, we will be Rs 9,800 crore company with an EBITDA of Rs 700 to Rs 800 crore and assets of Rs 2,500 crore," he said.

Kishore Biyani, managing director of the company, could not be contacted for comments.

Pantaloon holds 10% stake in Capital First (Future Capital Holdings) and 19% in Future Lifestyle Fashions.."With sale of  stake in insurance arms, we are done with divestments. We do not have immediate plans of selling anything. We will look at selling residual stakes in some of the investments in case of private placement or anything else." he said.