Future Retail board approves raising $500 million funds
today Jan 5, 2020
Kishore Biyani-led Future Retail has said that its board has approved the raising of long-term funds, up to $500 million (Rs 3,588 crore).
The board, at its meeting held on Saturday also approved the allotment of total 396,03,960 equity warrants at Rs 505 per warrant to Future Coupons Private Limited (FCPL) (formerly known as Future Coupons Limited).
The company said that the funds will be used on the acquisition of in-store infrastructure retail assets.
“The board approved raising of long term funds for the company subject to the applicable regulatory approvals and market conditions, through the offer, issue and of allotment of senior, secured USD-denominated notes for an aggregate amount not exceeding $500 million to meet the capital expenditure for the acquisition of certain in-store infrastructure retail assets, in one or more tranches", the company said in a BSE filing.
Future Retail has seen a drop in footfall in the first half of the current financial year, amid the economic slowdown in the country. The company expects to see single-digit growth in the current fiscal 2019-2020 at like-to-like growth of 6-7 percent.
Future Retail operates more than 1,550 for its brands Big Bazaar, FBB, Easyday, and Ezone, among others.
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