Promoter entity, IFC to infuse ₹613 crore in Future Lifestyle

Kishore Biyani company plans to raise another 400-cr NCD issue

The board of directors of Future Lifestyle Fashions Ltd (FLFL) on Thursday approved fund-raising plans to the tune of 613 crore from IFC and a promoter entity.

The board has considered and approved the issue of 51.45 lakh shares of the company at an issue price of 414 a share, aggregating to 213 crore on preferential basis to International Finance Corporation, a registered foreign portfolio investor. IFC is a member of the World Bank Group and is the largest global development institution focussed on the private sector in emerging markets.

The board has also approved issue of 96.62 lakh shares at an issue price of 414, aggregating to 400 crore on preferential basis to FQS Trading Pvt Ltd, a promoter group entity.

The relevant date for the purpose of pricing of the proposed preferential issues of equity shares would be February 19, which is 30 days prior to the date of the proposed extraordinary general meeting of shareholders of the company.

The proposed fund-raise from IFC and promoter entity would be utilised towards enhancing stakes in subsidiaries and associates of FLFL and debt reduction.

Apart from being EPS accretive, this will help optimise costs, improve cash flows and simplify FLFL’s operations and investment structures. Besides, the board has also passed an enabling resolution giving authority to issue non-convertible debentures (NCDs)/ other securities on private placement basis, for up to 400 crore, in one or more tranches, within a period of one year, subject to approval by the shareholders of the company. An EGM of the company will be held on March 20 for obtaining shareholders’ approval for the same as well as for preferential issue of equity shares.

NCD utilisation

The funds would be used for replacing existing debts in the company in order to improve the maturity profile and to reduce overall finance costs.

Shares of Future Lifestyle Fashions closed 2.3 per cent lower at 380 on the BSE.