Pantaloon Retail dips on valuation concerns

Aditya Birla Nuvo may rework its deal for a controlling stake in the company

Pantaloon Retail (India) is trading lower by 3% at Rs 140 on reports that Aditya Birla Nuvo is set to rework its deal for a controlling stake in the company due to valuation concerns.

“Kumar Mangalam Birla Group Company had announced plans to buy a 50.1% stake in Pantaloons in May this year for Rs 800 crore in cash while taking on a similar quantum of debt. However, the Pantaloons June quarter business fell below estimates, leading to a slight valuation drop,” reports suggest.

The stock opened at Rs 144 and hits three-month low of Rs 139 on the NSE. A combined 290,000 shares have changed hands on the counter in opening deals on both the exchanges.