Kishore Biyani’s Pantaloon Retail is the latest to join the QIP bandwagon. The company plans to raise Rs 1000 crore through a QIP (Qualified Institutional Placement) to institutional investors. It has received its shareholders’ approval for raising funds through the QIP route in an Extraordinary General Meeting, the company said in a filling to the Bombay Stock Exchange.
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The company said that it will use the raised funds for bringing the debt levels down and for growing the business. The company has not yet divulged information on the the percentage of stake that it will dilute for raising the money through QIP.
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Pantaloon Retail is also reportedly in talks with private equity players like TPG and Bain Capital for raising around Rs 1200 crore in the about two weeks.
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This will be the company’s second QIP since its inception. Pantaloon Retail had done its first QIP in 2006 when it raised Rs 260 crore. The company had also recently raised Rs 368 crore through an issue of warrants and shares to the promoters.
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The company’s total debt, on a standalone basis, in FY 2009 (Pantaloon’s financial year ends on 30 June) is estimated to be around Rs 3,200 crore while its debt -equity ratio is estimated at 1.2:1. The debt-equity ratio is expected to go up by 1.4:1 by the end of FY2010.
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Pantaloons plans to open 18 Central stores and 45 Big Bazaar outlets in next one year. The Future Group is also in talks with Carrefour, the French retailer, for a joint venture in back-end operations and logistics. Besides Big Bazaar and the Central Store, Pantaloon Retail owns chains like Pantaloon, Home Solutions, Food Bazaar and others.