Future Retail Ltd(FRL) on Thursday informed the bourses that the Board of Directors of the company have considered and approved segregation of the home retail business into Praxis Home Retail Pvt Ltd (PHRPL) through demerger.
“The proposed segregation would be carried out vide a Composite Scheme of Arrangement between Future Retail Limited and Bluerock eServices Private Limited and Praxis Home Retail Private Limited (proposed to be converted into public company prior to completion of the scheme) and their respective shareholders under Sections 230 to 232 read with Section 66 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013,” company’s press release said.
The company further added the equity shares of PHRPL to be issued to the shareholders of FRL pursuant to the scheme shall be listed on the stock exchanges viz, BSE and NSE (subject to listing permission being granted by stock exchanges).
Pursuant to the scheme, the shareholding of the existing shareholders of PHRPL would get canceled and the shareholders of the company would get equity shares of PHRPL. Upon such issue of equity shares, the shareholding pattern of PHRPL shall be identical to that of the company.
The company also in a separate notification informed the bourses that the board also approved raising the investment limit of Registered Foreign Portfolio Investors (including FIIS) in equity shares capital of the company from present 24 per cent to 49 per cent.
Share price of the company closed 4.56 per cent up at Rs 306.20.