The owner of Currys and PC World has called on investors for £311m to help it bolster its finances and revamp stores.
DSG International, Britain's second-largest electrical goods retailer, has also managed to renegotiate a £400m credit facility as it looks to reverse a series of poor trading results.
The firm, whose shares plunged by up to 90% last year as sales fell and concerns about its finances grew, said it would raise £210.6m from selling cut-price shares to existing shareholders.
It hopes to raise a further £100m via a share placing - selling new shares to new investors.
It said it expected underlying profit for the year to May 2 to be more than £42m.
DSG, whose chains include UniEuro in Italy and Elkjop in Nordic countries, has revealed successful trials of new-format stores, which have greater product ranges, more interactive areas and improved customer service.
Chief executive John Browett said: "The combination of the share issue and the amended bank facilities announced today strengthen the capital structure of the business and provide the group with the flexibility to invest in the renewal and transformation plan at a faster pace that positions the group to emerge from the consumer downturn in a stronger position."
DSG said the rights issue of 1.5 billion new shares would be priced at 14 pence apiece - a 63% discount to Wednesday's closing price.
It will also place 333.3 million new shares at 30 pence - a 20 percent discount to Wednesday's close.
Both the placing and rights issues are fully underwritten by Citigroup and JP Morgan.
After sinking to a low of 8.75 pence in December, DSG shares have recovered to as high as 39 pence this year on optimism about the store revamp and signs that consumer confidence is starting to return.
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