Future Lifestyle Fashions on Thursday approved to issue 51.44 lakh shares at Rs 414 per unit on preferential basis to International Finance Corporation (IFC).
The board of directors also approved to issue 96.61 lakh equity shares at Rs 414 on preferential basis to FQS Trading Pvt Ltd, a promoter group entity.
"The proposed fundraise from IFC and promoter entity will be utilised towards enhancing stake in subsidiaries and associates of Future Lifestyle Fashions and debt reduction," the company said.
The board approved enabling resolution giving authority to issue of non-convertible debentures (NCDs) and other securities on private placement basis for value up to Rs 400 crore in one or more tranches within a period of one year.
"This will be utilised towards replacing existing debts in the company to improve maturity profile and reduce overall finance cost," the company said in a statement.
An extraordinary general meeting of the company will be held on March 20 for obtaining shareholders' approval for the proposed preferential issues of equity shares and enabling resolution for issue of NCDs and other securities on private placement basis, it added.
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