Pantaloon Retail Board to issue Preferential shares

 The board of directors of Pantaloon Retail India at its meeting held on Aug. 18, 2007, decided to issue of 4 million equity shares of Rs 2 each, at a premium of Rs 498, aggregating to 2 billion, on preferential basis to private investors.

The board has also decided to issue 21,200,000 warrants at a price of Rs 500 per warrant aggregating to Rs 10,600 million to promoter group, Pantaloon Employee Welfare Trust and select employees of the company.

The warrant-holders have the option to acquire the same number of equity shares in one or more tranches within a period of 18 months from the date of issue of warrants. The relevant date for pricing for the aforesaid issue of securities is Aug. 19, 2007.

Further an extraordinary general meeting of the company is scheduled on Sep. 18, 2007 for obtaining shareholders approval for the aforesaid purpose.

The board has also given its consent as holding company for the initial public offering (IPO) by Future Capital Holdings for 10% of the post issue capital.

Shares of the company were last trading up Rs 20.95, or 4.39%, at Rs 498.00. Total volume of shares traded at the BSE was 200 (9.57 a.m, Monday).