India's largest listed retailer, Pantaloon Retail India, plans to complete the process of hiving-off Big Bazaar and Food Bazaar into a wholly-owned subsidiary in the next two-three months.

Pantaloon Retail aims to raise funds to fuel expansion through the new subsidiary, which would be named Future Value Retail and governed independently.

"The process of realignment has started and should be over in the next 2-3 months. We will seek shareholder approval through a postal ballot in the next 60 days," Pantaloon Retail (India) Ltd's Managing Director Kishore Biyani told PTI here.

He said the rejig is aimed at unlocking value for shareholders and for the firm to become a pure retail player.

Pantaloon Retail is the flagship company of Biyani's Future Group and operates 119 Big Bazaar stores in over 70 cities across the country and plans to expand and operate around 275 stores by 2014.

In April this year, it had announced plans to raise Rs 1,200-1,500 crore and has so far raised Rs 367.5 crore through preferential allotment of shares and warrants in June.

"Besides, we are in the process of raising another Rs 700-1,000 crore at a group level," Biyani said, adding that it could take time.

Pantaloon Retail is also raising roughly Rs 200 crore by transferring the non-core business of separate group companies to PFH (Entertainment Ltd), he said, adding the group was considering an IPO of Big Bazaar.