Future Retail Limited (FRL) on Thursday said its board has approved the segregation of its home retail business into Praxis Home Retail (PHRPL) through demerger.
The home retail business of the company was operated through HomeTown stores.
The company informed the BSE that it will further seek the listing of PHRPL.
"The equity shares of PHRPL to be issued to the shareholders of FRL pursuant to the scheme shall be listed on the stock exchanges viz BSE and NSE (subject to listing permission being granted by the stock exchanges)," the company said in a filing to the BSE.
"The scheme would be subject to approval of the National Company Law Tribunal, stock exchanges, SEBI (Securities and Exchange Board of India) and various statutory approvals, including those from the shareholders and the lenders/creditors of the companies involved in the scheme."
Besides, the company said, it has approved the increase of the investment limit of registered foreign portfolio investors in its equity share capital to 49 per cent from the current share of 24 per cent.
"... increase of the investment limit of registered foreign portfolio investors (including FIIs - foreign institutional investors) in equity share capital of the company, subject to the approval of members of the company and other applicable statutory approvals, from present 24 per cent to 49 per cent of the company's total paid-up equity share of capital of the company," the BSE filing said.
The company also announced the appointment of Sridevi Badiga as an additional independent director of the company for a term of five years effective from April 20.
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