Provogue India plans to raise Rs 477 crore

Fashion garments maker Provogue India on Friday said it will raise about Rs 477 crore through issue of shares and convertible warrants for its future activities including expansion plans.The firm would be raising these funds for expansion in its retail infrastructure subsidiary, expansion of current retail network, setting up of new retail formats, bringing international brands into India, and for general corporate purposes including acquisitions.

Provogue would issue 28.5 lakh equity shares worth about Rs 314 crore on preferential basis, it said in a filing to the Bombay Stock Exchange.Altima Partners, T Rowe Price, Genesis, New Vernon, Liberty International, Acacia Partners, Dharmayug Investment and CNBC have participated in the preferential offer, which would be locked in for one year from the date of allotment, the filing added.

Further, Provogue would issue 14.84 lakh convertible warrants worth Rs 163.24 crore to Everest Plaza Pvt Ltd, and Fairprice Traders (India) Pvt Ltd.Both shares and convertible warrants would be allotted at a price of Rs 1,100 each.

Biyani to up his stake in Pantaloon

Kishore Biyani, the promoter of Future group, plans to increase his stake in Pantaloon Retail India Ltd (PRIL). The stake increase is expected to be around 13.5%, which will be done by infusing over Rs 1,000 crore through convertible equity warrants.

Capital funding, according to analysts, would have been the biggest roadblock Pantaloon Retail would have faced in achieving its growth ambitions.
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In all, the company is looking at raising over Rs 1,200 crore through a combination of promoter investments, two undisclosed institutional investors and employees. Analysts envisage the dilution in equity to be around 17%.

The PRIL board has approved raising funds to the tune of Rs 200 crore by issuing 40 lakh equity shares at a premium of Rs 498 per share. Pantaloon Retail India Ltd (PRIL) has also finalised plans to invest Rs 325 crore into a subsidiary company, Pantaloon Future Ventures Ltd (FVL).

Read more in The DNA Money article.