Future Retail files papers for Rs 1,600 cr rights issue

Kishore Biyani-promoted Future Retail has filed initial papers with market regulator Sebi to raise up to Rs 1,600 crore through a rights issue.
As per the draft letter of offer of Future Retail filed with Sebi, the company would issue certain classes of shares to its public shareholders on a rights basis.
"Total proceeds from the issue of equity shares and class B shares would aggregate up to Rs 1,600 crore," Future Retail said in the document.
In a rights issue shares are issued to existing investors as per their holding at a pre-determined price and ratio.
The funds from the issue would be utilised towards repayment/ pre-payment of certain borrowings availed by the company as well as for general corporate purposes.

Axis Capital, JM Financial Institutional Securities and Edelweiss Financial Services are the lead managers to the issue. Link Intime India is the registrar to the issue.

Future Retail is the flagship company of the Future Group and is into organised multi-format retail business in India.
The company has retail stores in various formats including food, fashion apparels, accessories and footwear, general merchandise, consumer durables and electronics.
The company has pan-India presence with 321 stores in 98 cities in the country as of March 31, 2014.