Future Consumer aims to raise fresh funds of Rs 350 crore for expansionDevdiscourse News Desk | New Delhi | Updated: 07-04-2019 19:51 IST | Created: 07-04-2019 18:54 IST
Future Consumer Ltd (FCL) Sunday said it has plans to raise Rs 350 crore by issuing securities to fund expansion plans and reduce debts. International Finance Corporation (IFC), which currently holds 3 per stake in FCL, will be infusing up to Rs 210 crore, while Verlinvest with 7 per cent stake will invest up to Rs 7O crore through preferential allotment of compulsorily convertible debentures (CCDs).
Further, the promoters are investing up to Rs 70 crore through warrants. The board has approved to issue CCDs to IFC and Verlinvest, which are expected to participate in this fundraising activity, FCL said in a regulatory filing on Sunday.
Besides, the board has approved the acquisition of the personal care portfolio of Athena Life Sciences comprising brands Iraya, D'Free, Hair For Sure and Safe & Sure, for an equity consideration. "We are pleased to extend our ongoing association with esteemed institutions such as IFC and Verlinvest. They have partnered in our growth journey so far and we are excited to further deepen this relationship," FCL Managing Director Ashni Biyani said.
Athena Life Sciences' acquisition would enable the company to expand its portfolio in high margin categories of skin and hair care, FCL said. "FCL will issue equity shares to the existing shareholders of Athena," it added.
The company also added that all the decisions would be subject to final transaction documents, satisfactory due diligence and shareholder approvals and other approvals. FCL (formerly known as Future Consumer Enterprise Ltd) is a sourcing-to-supermarket food company by Future Group.