Aditya Birla Nuvo Board Approves Termination of GDR Issue by Pantaloons

New Delhi: The Aditya Birla Nuvo board today accepted termination of plans to problem GDRs by way oforganization company Pantaloons fashion and Retail (PFRL) as envisaged underneath a merger scheme to consolidate their branded clothing enterprise because of regulatory troubles.

PFRL, that is engaged in multi-brand retailing, had made an utility to “applicable authority” to are looking for permission to problem GDRs and shares to the GDR holders and non-resident shareholders of Aditya Birla Nuvo (ABNL) as consistent with the merger scheme.

but, based on discussions with such authority, it transpired that PFRL’s utility shall not be favourably taken into consideration as it is not permissible under the extant FDI policy and subsequently, the statedapplication has been withdrawn by means of PFRL,” the organization said in a BSE filing.

In view of the improvement, the board of administrators of ABNL has “accredited the termination of the GDR programme…”, it brought.

ABNL stated its GDR holders shall be entitled to converting their GDRs into its stocks and they’d betreated inside the identical way as other shareholders conserving stocks below the FD direction inside the organization.

As for issuing of stocks to non-resident shareholders by PFRL, the submitting stated PFRL “could holdissuance of shares to such shareholders in abeyance… till such time as PFRL is permitted to issue suchshares under relevant law or by using precise approval or it determines different steps to be taken in lieu of such issuance”.

In might also this yr, the Aditya Birla organization had introduced merger of its clothing commercial enterprise.

below the scheme, the apparel corporations of ABNL and every other organization company Maduraclothes life-style Retail organisation Ltd (MGLRCL) became merged into listed company Pantaloonsfashion & Retail Ltd (PFRL), which changed into to be renamed as Aditya Birla fashion and Retail (ABFRL).

the brand new entity became envisaged to have a retail community of 1,869 unique shops with anpredicted sales of over Rs 6,000 crore.

As per the scheme, shareholders of ABNL were entitled to 26 new fairness stocks of PFRL for each fivefairness shares held in ABNL pursuant to the demerger of Madura fashion.

in addition, shareholders of MGLRCL might get 7 new stocks of PFRL for each 500 shares held in MGLRCL pursuant to the demerger of Madura life-style.

choice shareholders of MGLRCL had been to get 1 new share of PFRL.

story first posted on: September 04, 2015 22:57 (IST)

Tags: Pantaloons fashion & Retail Ltd, Aditya Birla Nuvo, Madura clothes way of life Retail agency Ltd