Pantaloon Retail, the country’s largest retailer, today said it plans to raise as much as Rs 1,000 crore by selling shares to investors through the qualified institutional placement (QIP) route.
The company obtained its shareholders’ approval for its plans in the extraordinary general meeting (EGM) held yesterday. This is the second time the Kishore Biyani-led Pantaloon is using the QIP route to raise money.
The first time was three years ago, when the company raised Rs 260 crore by selling shares to institutions in 2006.
“We may use these funds to bring down debt levels and grow the business,” Kishore Biyani, managing director of Pantaloon Retail, said. On equity dilusion in the company, he said: “We have not finalised details as yet.”
On a standalone basis, the company’s total debt in FY 2009 (Pantaloon’s financial year ends on June 30) is estimated at around Rs 3,200 crore and debt-to-equity ratio at 1.2:1. It is expected to go up to 1.4:1 by the end of FY 2010.
The company is also talking to private equity investors, such as TPG and Bain Capital, to raise as much as Rs 1,200 crore in the next 2-3 weeks.
“QIP will follow placement to PE investors,” company sources said.
Source: Business Standard