Pantaloon to demerge mail, food businesses

Pantaloon to demerge mail, food businesses

Mumbai: Future Group promoted-garment retail chain Pantaloon Retail (India) Ltd will demerge its mail management and food services businesses into its subsidiaries.

The company will issue one equity share of Rs10 from the subsidiary company for every 20 shares of Rs2 each held in Pantaloon, the company told the stock exchanges.

The scheme will need the approval of majority shareholders and creditors of the Pantaloon and its subsidiaries, together with a favourable order from the Bombay high court, besides other regulatory approvals.

On Friday, Pantaloon declared a net profit of Rs32.5 crore for the quarter ended 31 March, down from Rs34.3 crore last year.