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Last Updated : Mar 25, 2020 11:31 AM IST | Source: Moneycontrol.com

Coronavirus impact | Future Group's Kishore Biyani in a difficult situation as lenders invoke shares: Report

Stocks of Future Group's listed entities plunged over the past month, due to fears over the outbreak's economic impact.

 
 
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Future Group chief executive officer (CEO) Kishore Biyani is in a difficult situation as lenders have sought more collateral against his pledged shares, according to a Mint report.

The coronavirus, or COVID-19 outbreak, has impacted Future Group's business. The company had signed deals with Amazon, Blackstone, and Nippon group over the past six months.

Stocks of the group's listed entities plunged over the past month, due to fears over the outbreak's economic impact. Future Enterprises, Future Lifestyle Fashions, Future Retail, and Future Supply Chain Solutions have lost around half of their value since the start of 2020.

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On March 24, Future Retail said some lenders who held non-convertible debentures (NCDs) through IDBI Trusteeship Services invoked pledged shares worth 8 percent.

Future Group is evaluating several ways to solve the debt problem, said the report. One such method is selling the entire business of Future Lifestyle Fashions.

Future group is also exploring the option of fundraising at the promoter level, through a combination of equity and structured debt, the report said.

“The promoters are engaged in talks with various investors to raise money. They would need an infusion of around Rs 1,000-1,500 crore in the near term," a source told the publication.

Moneycontrol could not independently verify the report.

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First Published on Mar 25, 2020 11:31 am
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