Mumbai: India’s largest listed supermarket operator, Pantaloon Retail India Ltd, will raise around Rs367 crore by selling shares and warrants, it said on Monday.
The board of the company, promoted by Kishore Biyani-led Future group, also approved spinning off the retail and fashion divisions to wholly owned units and renaming itself Future Markets and Consumer Group Ltd.
The company will sell 11 million shares at Rs183 apiece to founders, raising Rs201 crore. It will sell 4.1 million shares to Dharmyug Investments Ltd at the same price to raise Rs75 crore.
Pantaloon also plans to issue five million warrants to the founders to raise Rs91.5 crore. These warrants are convertible into shares within 18 months, it said. All plans are subject to approval by shareholders, who are scheduled to meet on 12 May.
Shares of Pantaloon Retail closed 8.04% higher at Rs184.70 on the Bombay Stock Exchange (BSE) on a day its benchmark Sensex index closed 1.51% higher at 10,967.22. The firm’s shares have risen by 49.9% in a month.
In a regulatory filing to the BSE last week, the company had said that the board would consider the issuance of securities, including shares or warrants, on preferential basis to the promoters or investors besides “changing the name of the company in view of its new structure.”
Bloomberg contributed to this story.