Future Retail plans to reduce debt by raising Rs 650 crore
Kishore Biyani-owned Future Retail is planning to raise capital up to Rs 650 crore ($86 million) by issuing non-convertible debentures (NCDs) to reduce its debt.
The company will utilise the funds to replace its existing high-cost current or near term maturity debts requirements.
"The Board has also authorised the Committee of Directors to decide on matters and transactions relating to aforesaid proposed issuance and allotment of NCDs including but not limited to finalisation and approval of terms and conditions of issue, number of NCDs and timing of the issue from time to time," the company said in a BSE filing.
Future Retail has seen its share price consistently decline and its holding company Future Corporate Resources Private Limited has debt repayment obligations of Rs 1045 crore ($141.47 million) for the next two years putting the business in a difficult situation.
The company operates over 1,500 stores that cover over 16 million-square-feet of retail space in 400 cities. It has large format stores, Big Bazaar, its flagship chain besides small store neighbourhood retail chains, Easyday Club and Heritage Fresh.
For the financial year 2018-19, Future Retail had reported a net profit of Rs 733 crore on revenue of Rs 20,165 crore.
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