India's FLFL to raise funds from promoters, IFC

24 Feb '20

2 min read

Pic: Future Lifestyle Fashions

Future Lifestyle Fashions’ (FLFL) board has approved issuing 51.44 lakh shares at ₹414 per share on preferential basis to International Finance Corporation (IFC) and 96.61 lakh equity shares at ₹414 on preferential basis to FQS Trading, a promoter group entity. The funds would be used to enhance stake in subsidiaries and associates of FLFL and reduce debt.

The company announced this in a recent exchange filing. IFC is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets.

Further, the board approved enabling resolution giving authority to issue non-convertible debentures (NCDs) and other securities on private placement basis, for value upto ₹400 crore, in one or more tranches, within a period of one year, subject to approval by the shareholders.

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

An extraordinary general meeting of the company will be held on 20 March 2020, for obtaining shareholders' approval for the proposed preferential issues of equity shares and enabling resolution for issue of NCDs and other securities on private placement basis.

Future Lifestyle Fashions is the flagship fashion business of Future Group. The company operates more than 300 stores in over 90 cities.

Fibre2Fashion News Desk (DS)

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