BackFuture Lifestyle to raise Rs500 crore to fund fashion retail business
Future Lifestyle looks to raise the said amount by issuing non-convertible debentures
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New Delhi: Future Lifestyle Fashions Ltd is firming up plans to raise ₹ 500 crore from the domestic or overseas market on a private placement basis to bankroll its fashion retail business growth.
The company is due to pass a special resolution at its annual general meeting scheduled for 29 August to raise the said amount by issuing non-convertible debentures. The funds are to be borrowed in Indian or foreign currency by issue of debt instruments for an amount of up to ₹ 500 crore in domestic or overseas market, it said in a regulatory filing.
It plans to do so during one year from the date of passing the resolution. The funds to be raised will remain within the overall borrowing limit of the company, it said in the filing. “Considering growth of the fashion retail business and requirements of funds for operations, the company needs to raise additional funds in one or more tranches by issuing NCDs, bonds and/or debt instruments," the company said while explaining the rationale.
The dividend as recommended by the board for 2015-16, if announced at the AGM, will be paid within 30 days from the date of announcement. A Future Group firm, Future Lifestyle Fashions will also seek shareholder consent for reappointment of Kishore Biyani as the managing director of the company for three years with effect from 25 June with a total remuneration of ₹ 2.41 crore per annum.
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