Retail chain Pantaloons Fashion & Retail Ltd will invest Rs 150 crore to add 20 stores, this fiscal.
In an investor’s update, Pantaloons’ parent company Aditya Birla Nuvo said: “Full year capex (capital expenditure) guidance (for Pantaloons) stands at Rs 150 crore towards addition of 18-20 new stores to reach 100 mark.”
The company added that the investment will also be utilised in refurbishing 21 stores through infrastructure and assortment upgrade. Last month, Pantaloons said it plans to raise up to Rs 500 crore through various means, including a rights issue this year to fund its growth capital requirements.
Out of the aggregate amount of Rs 500 crore, upto Rs 300 crore is proposed to be raised through rights issue, it added.
Its Board has constituted a committee of directors to decide and approve the terms and conditions of the rights issue, including the rights entitlement ratio, issue price, record date, timing of the rights issue.
Pantaloons for the quarter ended June 30 reported revenue of Rs 386 crore. At present, there are 83 Pantaloons stores operational in the country.
In 2012, Aditya Birla Nuvo Ltd had entered into an agreement with the Future Group to infuse Rs 1,600 crore into Pantaloons and acquire a majority stake in the store chain.
