Mumbai: Kishore Biyani-promoted Pantaloon Retail surged over 8% on the Bombay Stock Exchange (BSE) after the company said its shareholders approved the proposal of raising Rs368 crore via preferential issue of equity shares and warrants for funding its expansion plans.
The shares surged 8.03% to a high of Rs228.
The shareholders at their extra-ordinary general meeting has approved the issuance of 1.10 lakh equity shares and 50 lakh warrants to promoter group firm PFH Entertainment Ltd at Rs183 a piece, totalling to Rs292.80 crore, Pantaloon said in a filing to BSE.
Besides, shareholders also approved allotment of 41 lakh equity shares to private investor Dharmayug Investments Ltd at Rs183 each, aggregating to Rs75.03 crore.
Post allotment, the stake of PFH Entertainment Ltd in PRIL would go up to 13.31% from 4.94%, while Dharmayug Investments’ stake would stand at 2.29%.
The fund raised pursuant to the said allotment would be utilised to fund the various expansion plans, long-term working capital requirements and to finance investment opportunities, Pantaloon Retail India (PRIL) said.
Last month, the board of PRIL had approved the raising of Rs368 crore through issue of equity shares and warrants, besides hiving off its retail and fashion division to its wholly-owned subsidiaries.