The shareholders of Kishore Biyani’s Pantaloon Retail India approved the proposal of retailer to raise Rs 368 crore by selling equity and warrants to promoters.

The move would increase stake of promoters to 51 per cent from 46.5 per cent in the company and help to bring down ever growing debt to equity ratio. The ratio increased to 1.21:1 in FY 2008 and is expected to be around 1.4:1 for the fiscal ending June 30.

The company would raise Rs 201.3 crore by selling equity shares to PFH Entertainment Ltd, a promoter group company, at Rs 183 a share while about 4.1 million shares will be sold to Dharmyug Investments at a price of Rs 183 per share, raising funds worth Rs 75.03 crore.

The firm said in a statement, “The warrants issued and allotted will be transferable within the promoter group and associates subject to board approval.”

Pantaloon Retail (India) Ltd would now do business through a holding company Future Markets and Consumer Group across financial services, insurance, logistics and knowledge services and media segment.

Meanwhile, stock price of Pantaloon surged following the retailer's announcement to issue preferential equity shares and warrants.

Shares of the firm were trading at Rs 220.30, with increase of 4.38 per cent, at 1:55 pm.