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Last Updated : Feb 20, 2020 03:48 PM IST | Source: PTI

Future Lifestyle Fashions to raise over Rs 600cr from promoters, IFC

The board of directors of the company at its meeting held on Thursday also approved an enabling resolution to raise Rs 400 crore through issue of of non-convertible debentures (NCDs) or other securities on private placement basis in one or more tranches within a period of one year, Future Lifestyle Fashions Ltd (FLFL) said in a regulatory filing.

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Kishore Biyani-led Future Lifestyle Fashions on Thursday said its board has approved raising over Rs 610 crore from its promoters and IFC, which will be used for enhancing stake in subsidiaries and debt reduction.

The board of directors of the company at its meeting held on Thursday also approved an enabling resolution to raise Rs 400 crore through issue of of non-convertible debentures (NCDs) or other securities on private placement basis in one or more tranches within a period of one year, Future Lifestyle Fashions Ltd (FLFL) said in a regulatory filing.

The board approved issuance of 51,44,927 equity shares of face value of Rs 2 at an issue price of Rs 414 each, aggregating Rs 213 crore on preferential basis to International Finance Corporation (IFC), a member of the World Bank group.

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Further, the board also approved issue of 96,61,835 equity shares of face value of Rs 2 each at an issue price of Rs 414 per share totalling just a tad below Rs 400 crore on preferential basis to FQS Trading Pvt Ltd, a promoter group entity, it added.

"The proposed fund raise from IFC and promoter entity, would be inter-alia utilised towards enhancing stake in subsidiaries and associates of FLFL and debt reduction," the company said.

Apart from being EPS (earning per share) accretive, optimising cost and improving cash flows, this will simplify FLFL's operations and investment structures, it added.

FLFL said its board also approved an enabling resolution giving authority to issue non-convertible debentures (NCDs) or other securities on private placement basis for a value up to Rs 400 crore in one or more tranches, within a period of one year, subject to approval by shareholders.

"This will be utilised towards replacing existing debts in the company to improve maturity profile and reduce overall finance cost," it said.

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First Published on Feb 20, 2020 03:40 pm
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