Mumbai: After the completion of the transaction and issuance of new shares, the existing base of 9.28 crore equity shares of PFRL will go up to 77.28 crore equity shares.
A shareholder holding 100 shares in ABNL will continue to hold 100 shares in ABNL and in addition will get 520 shares of PFRL.
Despite repeated queries on the deal size, Birla declined to comment on the same.
ABFRL will have presence across formats in the apparel industry.
When asked whether the Group will bring in more number of retail companies in phases in the near future, Birla said there was no plan to do so.
On capital infusion, he said the new entity would not require any additional funding.
"This business generates strong cash flow and I believe that it can use its own internal accruals to fuel its own growth plan. It doesn't require any funding beyond that," Birla added.
The transaction advisor to the deal was Standard Chartered Bank while the independent fairness opinion to ABNL was given by Axis Capital.
Commenting on the merger, J M Financial, who gave independent fairness opinion to PFRL, said,
"This creates the leading branded fashion and retail business in the country.
"The size of 5 million sq ft and 1,800 plus stores along with the expansion and synergies would make this an extremely attractive investment opportunity for domestic and foreign investors."
