Future Group subsidiary Pantaloon Retail is planning to raise up to Rs 500 crore by offloading the non-core assets of the company as part of its restructuring plans.
“We have various plans for the company… Offloading the non-core assets of Pantaloon to raise close to Rs 300-500 crore is one of them,” Future Group Chief Executive Officer Kishore Biyani said.
He said, the company will float a special purpose vehicle (SPV) to raise funds and ensure that its restructuring plans are compliant with the foreign direct investment (FDI) policy guidelines.
At present, FDI is prohibited in multi-brand retailing, and only 51 per cent FDI is allowed in single brand stores.
Asked if the company has been talking to any private equity players, Biyani declined to comment saying the process has not been finalised and will take some time.
“It will take another six to seven weeks to finalise the issue. We will let you know by then,” he said.
Earlier, Future Group had put on hold a planned realignment of Pantaloon Retail India (PRIL) due to legal issues related to the government’s new FDI guidelines.