Pantaloon Retail (India) Ltd on Monday said its promoters will infuse Rs400 crore in the company in lieu of convertible warrants issued to them.
The warrants would be issued to promoters' group company, Future Ideas Realtors India Ltd, Pantaloon Retail said in a filing to the Bombay Stock Exchange.
The shareholders of the company, at its meeting held today, approved allotment of one crore convertible warrants from "time to time" at Rs400 per share aggregating to Rs400 crore, it added.
The option to acquire equity shares could be exercised by the warrant holders at any time within 18 months from the date of allotment of warrants.
"Consent of the company be and is hereby accorded to the board to create, offer, issue and allot from time to time in one or more tranches, one crore warrants to the Future Ideas Realtors India Ltd," the filing said.
Pantaloon Retail added that each warrant will be convertible into one equity share of Rs2 each at the premium of Rs398. It, however, did not give details regarding reasons for infusion of the amount.
However, Future Group chief promoter Kishore Biyani had last year said that the company aims to be a Rs25,000 crore entity by 2013-14, up from around Rs10,000 crore last year. He had also said that the group aims to add 18 million sq ft of retail space by end of the period. Pantaloon Retail is the flagship company of Future Group.
Meanwhile, in a separate filing to the BSE, Pantaloon added that one of its stakeholders, Mauritius-based Nailsfield Ltd, has increased its stake in the retail firm to 8.17%, from 5.25%. Nailsfield has purchased 33.40 lakh shares of the company at a value of Rs 17.47 crore in an open market transaction.
On Monday, Pantaloon Retail shares closed 0.6% up at Rs422 on the Bombay Stock Exchange, while the benchmark Sensex ended 1.1% up at 17774 points.
The plan for 2010-14 envisages revenue enhancement and expenditure reduction over different phases
Air India's five-year turnaround plan for financial revival of the ailing national carrier was today reviewed at its board meeting in the presence of civil aviation minister Praful Patel, reports PTI.
The plan for 2010-14 envisages revenue enhancement and expenditure reduction over different phases, airline sources said.
CMD Arvind Jadhav and newly-appointed chief operating officer (CEO) Gustav Baldauf gave a presentation on the plan at the three-hour long meeting, which was also attended by civil aviation secretary Madhavan Nambiar, they said.
The meeting came three months after the government appointed four independent directors on the Air India board to utilise their expertise in turning around the national carrier, which suffered an estimated loss of Rs5,400 crore in 2009-10.
The independent directors are Mahindra Group vice chairman and MD Anand Mahindra, Ambuja Reality Group chairman Harshvardhan Neotia, FICCI secretary general Amit Mitra and former Indian Air Force chief Fali Homi Major.
According to the sources, today's exercise is likely to be followed by a meeting with union representatives, who are being taken into the fold so that they can have a proper say in the company's turnaround plan.
"The CMD has informed us that the independent directors are playing an important role in formalising the turnaround strategy. He has assured the unions that there will be a meeting between the board and unions to consider our inputs on the turnaround strategy," said George Abraham, a senior leader of the Aviation Industry Employees Guild.
Discussing the issue threadbare, the G-20 leaders declared that though the financial sector should make a fair and substantial contribution towards paying for any bailouts, the policy should take into account each nation's "circumstances and options"
India's stand against any tax on banks for funding bailouts was vindicated, with the Group of Twenty (G-20) leaders agreeing that any such levy should be left to individual nations, reports PTI.
Discussing the issue threadbare, the leaders of the developed and fast developing economies declared that though the financial sector should make a fair and substantial contribution towards paying for any bailouts, the policy should take into account each nation's "circumstances and options."
It may be recalled that just before G-20 summit in Canada, finance minister Pranab Mukherjee had said, "We are not in favour of having taxation on banks." He voiced India's opinion within days of participating in the G-20 ministerial meeting at Busan in South Korea.
In their Toronto declaration, the G-20 leaders, including prime minister Manmohan Singh, US president Barack Obama, German chancellor Angela Merkel and French president Nicolas Sarkozy, decided that while the financial sector should make a contribution to prevent a breakdown, the policy approach should differ from country to country.
"We agreed the financial sector should make a fair and substantial contribution towards paying for any burdens associated with government's intervention, where they occur, to repair the financial system or fund resolution...
"To that end, we recognise that there is a range of policy approaches. Some countries are pursuing financial levies. Other countries are pursuing different approaches. We agreed the range of approaches follow these principles:
"To protect tax payers: reduce risk from financial system... take into account individual countries' circumstances and options and help promote a level playing field," the declaration said.
While countries like Britain, which has already levied a tax, France and Germany campaigned for such a tax, India has reservations.
It pointed out that its banking institutions were conservative by nature and followed healthy norms that prevented any crisis in the country in 2008.
India has been in favour of strong financial regulations, rather than imposing a levy on the banks.
Mr Mukherjee had said that if there were well-placed regulations, the health of banks can be protected.
The governments in the US and several other Western countries had pumped in hundreds of billions of dollars into many big financial players to avert their collapse in the wake of the economic turmoil in 2008-09.