Kishore Biyani-led Future Group company Future Consumer is planning to raise Rs 300 crore through a rights issue after the company's Board of Directors gave an approval at a meeting held on May 16.
As per a BSE filing, the board has appointed a committee of directors that will 'finalise the terms and conditions of the rights issue including the rights entitlement ratio, issue price, record date, payment option, timing of the rights issue and other related matters' at a later date.
Recently, the Future Group had announced plans to exit its insurance joint ventures. These moves are part of the group's efforts to sell non-core assets to repay loans to banks and redeem shares pledged with other lenders.
In other plans to reduce the Future Group debt of over Rs 10,000 crores, Kishore Biyani, who holds 90 percent in many of the entities, is said to be seeking funding from existing investors like Amazon and Premji Invest.
Here's the BSE filing:
Future Group recently got relief from the courts which restrained lenders UBS, IDBI Trusteeship from invoking the pledge on Future Retail shares, supporting the company's plea that the COVID-19 crisis had caused the stock price to collapse.
Future Consumer operates brands such as Karmiq, Tasty Treat and Golden Harvest among over 25 other brands.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
