Business Standard

Monday, December 23, 2024 | 08:43 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Future Enterprises plans to raise Rs 1,250 crore

The company is seeking approval of its shareholders in the upcoming AGM on August 29

Future Enterprises plans to raise Rs 1,250 crore

Press Trust of India New Delhi
Future Enterprises Ltd, part of Kishore Biyani-led Future Group, plans to raise up to Rs 1,250 crore through issuance of securities on a private placement basis to refinance its existing debts, fund expansion program and general corporate purposes.

The company is seeking approval of its shareholders in the upcoming AGM on August 29, 2016 for issuance of "non-convertible debentures of Rs 1,250 crore for refinancing its existing debts, expansion/capex program and general corporate purposes," Future Enterprises Ltd (FEL) said in a regulatory filing.

FEL, which has undergone change from a retail company to a retail infrastructure firm, said it has certain funds requirements as well as it proposes to rationalise its debt maturity profile while ensuring reduction in overall finance cost and improving debt service coverage ratio.
 

"This would also help the company to improve its balance sheet and credit profile resulting in improved credit rating and hence capability to obtain credit facilities at better terms and reduced rate of interest," the company added.

Further, with overall reduction in base lending rate by banking sector, there is further scope to borrow at reduced rate of interest, it said.

"On analysis of the present debt profile, it was felt that the company can further replace few of its current or near term maturity debts as well as some more high cost debts with fresh mobilisation of funds," it said.

FEL is seeking nod from its shareholders to authorise its board to issue fresh issue non-convertible debentures on private placement basis in one or more tranches, during the period of one year from the date of passing of the resolution.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 04 2016 | 7:13 PM IST

Explore News