Future Retail has dipped nearly 9% to Rs 133 after its board approved to issue equity shares to Brand Equity Treaties, an investor in the company, at price of Rs 130 on preferential basis. The issue price is about 11% discount over Tuesday's closing price of Rs 146 on the BSE.
The stock opened at Rs 147 and touched a high of Rs 148 on the BSE. A combined 4.36 million shares changed hands on the counter till noon deals on the BSE and NSE.
The company said it will issue 15.3 million share of Rs 130 each on preferential basis to Brand Equity Treaties for Rs 200 crore. It will also issue 7.6 million warrants at a price of Rs 130 each, aggregating Rs 100 crore to Future Corporate Resources, a promoter group entity with an option to the warrant holder to acquire same number of shares within a period of 18 months.
The relevant date for the pricing of both the aforesaid preferential issues of equity shares and warrants-A is June 9, 2014, it added.
Meanwhile, the board of directors of the Kishore Biyani-led Future Retail today approved raising of funds up to Rs 2,000 crore by issuing shares to promoters and investors.
The company said it will raise Rs 400 crore by issuing shares/warrants on preferential basis to investors and promoters and of Rs 1,600 crore through issue of shares on different classes on rights basis.
