The board of directors of Indian conglomerate Aditya Birla Nuvo Ltd (ABNL)has given their approval for a proposed plan to acquire the majority stake in Kishore Biyani's Future Group's Pantaloons Format clothing brand and retail chain business.

The Pantaloons Format business of the future group was recently demerged from Pantaloons Retail (India). Following the acquisition, ABNL will own multiple brands, store formats as well as a whole range of categories - casual wear, ethnic wear, formal wear, party wear and sportswear for men, women and kids.

ABNL is likely to pay an initial amount of 8 billion rupees for getting a controlling stake in the Pantaloons Format clothing brand and retail chain in the country. The sale of stake in the business unit will allow Pantaloon Retail, the country's biggest retail group, to reduce its debt by 16 billion rupees from 58 billion rupees.

The shares of Aditya Birla Nuvo increased Rs 18.35, or 1.98% and were trading at Rs 945.55 Bombay Stock Exchange (BSE) at the time of reporting this morning. The shares have touched in an intra-day high of Rs 950 and low of Rs 930. The total volume of shares traded at the BSE is 3,687.