Aditya Birla Nuvo terminates issue of GDRs by Pantaloons

The Aditya Birla Nuvo board has approved termination of plans to issue GDRs by group firm Pantaloons Fashion and Retail (PFRL) as under a merger scheme to consolidate their branded apparel business due to regulatory issues. “However, 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be favourably considered as it is not permissible under the extant FDI policy and hence, the said application has been withdrawn by PFRL,” the company said in a BSE filing.

In view of this, the board of directors of ABNL has “approved the termination of the GDR programme...”, it added. 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 through the FD route in the company. As far as issuing of shares to non-resident shareholders by PFRL is concerned, 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”.

As per an announcement made in May 2015, the Aditya Birla group’s apparel businesses and another group firm Madura Garments Lifestyle Retail Company (MGLRCL) was merged into listed firm Pantaloons Fashion & Retail (PFRL), which was to be renamed as Aditya Birla Fashion and Retail (ABFRL). As per the scheme, shareholders of ABNL were entitled to 26 new equity shares of PFRL for every five equity shares held in ABNL pursuant to the demerger of Madura Fashion and shareholders of MGLRCL would get seven new shares of PFRL for every 500 shares held in MGLRCL pursuant to the demerger of Madura Lifestyle.