Kishore Biyani-led Future Lifestyle Fashions will raise over Rs 610 crore from promoters and International Finance Corporation to pare off debt and enhance stake in subsidiaries.
Kishore Biyani-led Future Lifestyle Fashions will raise over Rs 610 crore from promoters and International Finance Corporation (IFC) to pare off debt and enhance stake in subsidiaries, the company said in a market filing on Thursday. The decision was taken in a meeting of the board of directors of Future Lifestyle Fashions. The company has also announced plans to raise Rs 400 crore through issue of non-convertible debentures (NDC) or other securities on a private placement basis in one or more tranches within a period of one year.
The board approved, “Issue of 51,44,927 equity shares of face value Rs 2 each of the company at an issue price of Rs 414 per Equity Share aggregating to Rs 212 crore on preferential basis to International Finance Corporation, said Future Lifestyle Fashions. The board also approved issue of 96,61,835 equity shares of face value of Rs 2 each at an issue price of Rs 414 per share on preferential basis to FQS Trading Private Limited, a promoter group entity.
“The proposed fundraise from IFC and Promoter Entity, would be inter-alia utilized towards enhancing stake in subsidiaries & associates of Future Lifestyle Fashions and debt reduction. This apart from being EPS accretive, cost optimization and improving cash flows, will simplify Future Lifestyle Fashions’ operations and Investment structures,” Future Lifestyle Fashions said. The issue of NCDs or other securities to raise Rs 400 crore will be utilized towards replacing existing debts in the Company to improve the maturity profile and reduce overall finance cost. Future Lifestyle Fashions will hold an Extraordinary General Meeting on March 20, 2020, for obtaining shareholders’ approval for the proposed preferential issues of equity shares and enabling resolution for the issue of NCDs /other securities on a private placement basis.
Future Lifestyle Fashion share price dropped 2.31 per cent during the market hours on Thursday to trade at Rs 380. Future Lifestyle Fashions, a part of the Kishore Biyani led Future Group, owns 300 stores in more than 90 Indian cities. The company had posted an 8 per cent fall on-year basis in its third-quarter profit after tax.