Kishore Biyani’s Pantaloon Retail India (PRIL) will be renamed as Future Retail India following the retailer’s decision to spin off the Pantaloons brand into a separate entity.

Pantaloon Retail said on Thursday that its board had passed a resolution to change its name after the country’s largest retailer sold majority stake in its apparel business to Aditya Birla Nuvo. In a filing to the stock exchange, the company said that it will issue 800 optionally fully convertible debentures (OFCDs) at Rs 1 crore per OFCD to Aditya Birla Nuvo and/or its subsidiary Peter England Fashion and Retail.

Earlier this week, the Aditya Birla group bought a majority stake in Kishore Biyani’s Pantaloons brand for Rs 800 crore, along with taking on a Rs 800-crore debt into the new entity. The $35-billion Aditya Birla group will make an open offer (of a minimum 26%) to shareholders of the de-merged entity and will hold a minimum of 50.01%. The Biyani family will hold 25% in the entity. Biyani will continue to operate the other formats, such as Big Bazaar, eZone and Food Bazaar stores. The transaction will help Pantaloon Retail reduce its debt by Rs 1,600 crore, something that has crippled the retailer over the last few years. PRIL rose 1% on the BSE at Rs 185 by close of Thursday’s trade.