Future Consumer Limited to raise Rs 350 crore to fuel expansion
Future Consumer Limited is looking to raise around Rs 350 crore ($50.6 million) from existing investors like International Finance Corporation, Verlinvest and the Promoter Group.
IFC currently holds a 3 percent stake in the company while Verlinvest has a 7 percent stake. The two will further increase their stake with an investment of Rs 210 crore and 70 crore respectively. An additional Rs 70 crore will be invested by the promoters of the company.
The investment will be made through preferential allotment of Compulsorily Convertible Debentures subject to respective internal approvals.
“The primary purpose of the fundraising is to fund various expansion plans and business initiatives of the company and improvement of costs and maturity profile of existing debt thereby further strengthening the balance sheet of FCL,” the company said in a statement.
Commenting on the investment, Ashni Biyani, managing director, Future Consumer Limited added: "We are pleased to extend our ongoing association with esteemed institutions such as IFC and Verlinvest. They have partnered in our growth journey so far and we are excited to further deepen this relationship."
The FCL board also approved the acquisition of personal care portfolio comprising of Iraya (ayurvedic personal care brand), D'Free (anti-dandruff solutions) and Hair For Sure of Athena Life Sciences Limited.
Future Consumer is a part of Future Group operating in personal care and FMCG space with 27 brands in over 65 categories. It posted revenue of Rs 3,005 crore last fiscal.
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