The cash is expected to enable the Future Group's retail arm Pantaloon Retail to reduce its debt. “It will help us exit from none core businesses,” the company said in a statement.
The deal is a welcome move for Pantaloon, which has a staggering debt in excess of Rs 5000 crores. Shares of Pantaloon Retail moved up smartly and were up more than 4% in trading today.
Analyst might continue to re-rate the stock given the constant move by the group to pare down its debt.