New Delhi, May 27 (PTI) Debt-ridden Future Retail on Wednesday said its board has approved raising up to Rs 650 crore by issuing non-convertible debentures (NCDs) to pare debt.
The NCDs will be issued on private placement basis in one or more tranches, Future Retail said in a BSE filing.
The Board has also authorised the Committee of Directors to decide on matters and transactions relating to aforesaid proposed issuance and allotment of NCDs including but not limited to finalisation and approval of terms and conditions of issue, number of NCDs and timing of the issue from time to time, the filing said.
The funds will be used mainly for replacing the company’s existing high cost current or near term maturity debts requirements.
The move comes after Future Retail’s promoter Kishore Biyani defaulted on loans in March and its share price took a plunge.
Several rating agencies as Standard & Poor’s and Fitch have downgraded the credit ratings of Future Retail after the default.
Future Retail operates over 1,500 stores that cover over 16 million square feet of retail space in 400 cities. It has large format stores, Big Bazaar, its flagship chain besides small store neighbourhood retail chains, EasyDay Club and Heritage Fresh.