Pantaloon Retail India Ltd has informed the BSE that the Board of Directors of the Company, at its meeting held on Monday, inter alia, have authorised raising of additional long-term funds.
The funds will be raised through a further issuance of equity-based securities to various investors by various means, including public / private offerings, qualified institutional placement and / or on preferential allotment basis or any combination thereof, under the applicable provisions of SEBI (Disclosure and Investor Protection) Guidelines, 2000, up to an amount not exceeding Rs1000 crore in one or more tranches, and to seek the approval of the members for the issue of securities as aforesaid.
The Board also authorised convening an Extra Ordinary General Meeting of the members, for approval of the resolutions for issuance of securities as contemplated herein above.
The Board also mandated to the management to consider the possibility of the merger of Home Solutions Retail (India) Ltd, its subsidiary, with a view to having better synergy and efficiency in the retail business.
At Rs300, the stock is trading at 19.2x FY2011 EPS and 3.3 FY2011 P/BV. We maintain our NEUTRAL recommendation on the stock.