Pantaloon to realign companies, raise Rs 1,500 cr in 2 months

Kishore Biyani's Pantaloon Retail India intends to complete in the next two months legalities for its ambitious plans of raising Rs 1,500 crore and realigning of group companies for expansion.

"Two months time is a good estimate (for the proposal's completion)," a company source said here.

The Board of Directors of the BSE-listed firm met here yesterday and approved raising Rs 367 crore through preferential allotment of shares and warrants.

It is believed that Future Group is in talks with Carlyle, Bain Capital, Blackstone, Kohlberg Kravis & Roberts for private equity funding of about Rs 1,100-1,200 crore.

"We are looking to raise funds independently without diluting any stake," the source said, without giving details.

In a major realignment exercise, the board proposed to rechristen Pantaloon Retail India (PRIL) as Future Market & Consumer Goods (FMGC), which will be the holding company for its multiple subsidiaries.

It is believed that Big Bazaar and Food Bazaar (its value retail segments) may be hived off into a separate entity called Future Value Retail, if they find a suitable partner.

"The proposed company - FMCG Ltd - will be the holding company for our two main subsidiaries, which will be created to focus on fashion and retail," Future Group founder and CEO Kishore Biyani told PTI.

Existing companies like Future Capital Holdings, Future Media and Future Logistics will come under FMCG Ltd.

"No new subsidiaries (apart from fashion and retail) are being created," the source said.

Pantaloon Retail India will sell 11 million shares at Rs 183 -- the firm's closing price on Thursday last -- for raising Rs 201 crore, the company said in an emailed statement.

Another 4.1 million shares will be sold at the same price to Dharmayug Investments Ltd to bring in Rs 75 crore.

Shares of PRIL yesterday closed at Rs 184.70, higher by 8.04 per cent over the previous close on the Bombay Stock Exchange.