Future Retail raises Rs 600cr from NCDs

Future Retail today raised Rs 600 crore through an issue of non-convertible debentures (NCDs) on private placement basis.
"The committee of directors of the company has at their meeting held on April 6, 2015, considered, approved and allotted of 6,000, 10.25 per cent secured redeemable non-convertible debentures (NCDs) of Rs 10 lakh each, aggregating to Rs 600 crore on private placement basis," the company said in a BSE filing.
Last month, Kishore Biyani-promoted Future Retail said it planned to raise up to Rs 1,500 crore through debt instruments to replace high cost loans and to invest on brand building and marketing.

The company had sought approval from its shareholders for raising up to Rs 1,500 crore through issue of non-convertible debentures on private placement basis.
Explaining the rationale behind the move, the company said: "With overall reduction in base lending rate by the banking sector, there is further scope to borrow at a reduced rate of interest."
"The present borrowing initiative would also help the company to replace some of its present high cost near-term maturity debts with lower cost and long-term maturity debts and further reducing overall cost of funding and improving debt maturity profile of the company," Future Retail said.

It further said the funds would be utilised for certain general corporate purpose, including brand building and other marketing expenses, acquiring assets such as furniture and fixtures vehicles and spend on lease improvements, among others.
Shares of Future Retail today closed at Rs 99.80 per scrip at the end of day's trade, down 2.25 per cent from the previous close on the BSE.