Home > Companies > News > Future Lifestyle to raise over 600 crore from promoters, IFC

Kishore Biyani-led Future Lifestyle Fashions on Thursday said its board has approved raising over 610 crore from its promoters and International Finance Corporation (IFC), which will be used for enhancing stake in subsidiaries and debt reduction.

The board of directors of the company at its meeting held on Thursday also approved an enabling resolution to raise 400 crore through issue of non-convertible debentures (NCDs) or other securities on private placement basis in one or more tranches within a period of one year, Future Lifestyle Fashions Ltd (FLFL) said in a regulatory filing.

The board approved issuance of 5.14 million equity shares of face value of 2 at an issue price of 414 each, aggregating 213 crore on preferential basis to IFC, a member of the World Bank group.

Further, the board also approved issue of 96,61,835 equity shares of face value of 2 each at an issue price of 414 per share totalling just a tad below 400 crore on preferential basis to FQS Trading Pvt. Ltd, a promoter group entity, it added.

“The proposed fund raise from IFC and promoter entity, would be inter-alia utilised towards enhancing stake in subsidiaries and associates of FLFL and debt reduction," the company said.

Apart from being EPS (earning per share) accretive, optimising cost and improving cash flows, this will simplify FLFL’s operations and investment structures, it added.

FLFL said its board also approved an enabling resolution giving authority to issue non-convertible debentures (NCDs) or other securities on private placement basis for a value up to 400 crore in one or more tranches, within a period of one year, subject to approval by shareholders.

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