Home / Knowledge / News / Fashion / ABNL board okays termination of Pantaloons GDR issue
ABNL board okays termination of Pantaloons GDR issue
05
Sep '15
The Aditya Birla Nuvo board has told the BSE that it has approved termination of plans to issue Global Depository Receipt or GDR by group firm Pantaloons Fashion and Retail (PFRL) as envisaged under a merger scheme to consolidate their branded apparel business due to regulatory issues, according to media reports.

Multi-brand retailer PFRL had made an application to "relevant authority" to seek permission to issue GDRs and shares to the GDR holders and non-resident shareholders of Aditya Birla Nuvo (ABNL) in line with the merger scheme.

In a BSE filing, the company said that based on discussions with such authority, it transpired that PFRL's application shall not be favourably considered as it is not permissible under the extant FDI policy and hence, PFRL has withdrawn the application.

Following the development, the board of directors of ABNL approved the termination of the GDR programme, the company said in the BSE filing.

ABNL said its GDR holders shall be entitled to converting their GDRs into its shares and they would be treated in the same manner as other shareholders holding shares under the FD route in the company.

As for issuing of shares to non-resident shareholders by PFRL, the filing said PFRL "would keep issuance of shares to such shareholders in abeyance... until such time as PFRL is permitted to issue such shares under applicable law or by specific approval or it determines other steps to be taken in lieu of such issuance".

In May this year, the Aditya Birla group had announced merger of its apparel business.

Under the scheme, the apparel businesses of ABNL and another group firm Madura Garments Lifestyle Retail Company Ltd (MGLRCL) was merged into listed firm Pantaloons Fashion & Retail Ltd (PFRL), which was to be renamed as Aditya Birla Fashion and Retail (ABFRL).

The new entity was envisaged to have a retail network of 1,869 exclusive stores with an estimated revenue of over Rs 6,000 crore. (SH)

 

Fibre2Fashion News Desk – India

Must ReadView All

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search