Thursday, January 04, 2007

Pantaloon plans to dilute stake in divisions

The Economic Times reports that Pantaloon Retail’s Kishore Biyani is planning to dilute stake in some of his subsidiaries to take on the new entrants in the retail field. The divisions that will be diluted are Future Media, Future Capital, Future Logistics and Central, although the method of dilution is not clear whether it would be via IPOs, preferential allotment or a strategic sale.

Edelweiss Securities has estimated that PRIL requires Rs. 4,500 crore, of which Rs. 1,000 crore is likely to come from equity dilution. Another Rs. 2,300 crore would come from external sources. ICICI Ventures, and Kotak SEAF India have already bought 15% and 6% of Home Solutions, another PRIL subsidiary.

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