News: Pantaloon blueprint for growth

(TT 26/08/2006) Mumbai - Kishore Biyani-promoted Pantaloon Retail has drawn up extensive plans to strengthen its market position. To begin with, it plans to divest a maximum of 24 per cent stake in its subsidiaries such as Home Solutions, Central Mall and Future Media and Logistics to raise up to Rs 500 crore.

The market is abuzz with rumours that Biyani plans to hive off Central Mall as a separate company altogether.

In a notice to the BSE, the firm said it plans to raise up to Rs 260 crore through issue of equity shares, warrants, fully and partially convertible debentures and such other securities on rights, follow on issue of shares, private placement to promoters or public or qualified institutional buyers.

Pantaloon also plans to issue 12,12,480 warrants at Rs 1,635 each adding up to Rs 198.24 crore to promoters and their associates with an option to the warrant holders to acquire same number of equity shares within 18 months.

Considering the firm has drawn up an expansion plan of close to 30 million sq ft by 2010, Pantaloon is expected to need around Rs 3,600 crore, analysts believe.