Future Retail to raise up to Rs 1,500 cr via NCDs

Future Retail plans to raise fresh funds of up to Rs 1,500 crore through non-convertible debentures (NCDs) on private placement basis to replace high cost loans and to invest in brand building as well as marketing.

The company, which recently concluded Rs 1,500 crore fund raising, has sought shareholders' nod for the fresh round of funding.

"Consent of the members is therefore sought in connection with the aforesaid issue...They are requested to authorise the Board for fresh issue non-convertible debentures on private placement basis up to Rs 1,500 crore," Future Retail Ltd said in a BSE filing.

The money will be raised in one or more tranches during the period of one year from the date of passing of the resolution, it said.

"On analysis of the present debt profile, it was felt that the company can further replace few of its current or near term maturity debts as well as some more high cost debts with fresh mobilisation of funds," Future Retail said.

The company also proposes to borrow for certain general corporate purpose such as brand building and other marketing expenses, acquiring assets such as furniture and fixtures vehicles among others.

Future Retail recently raised Rs 1,500 crore via non- convertible debentures on private placement basis to reduce its debts.

Last month, Future Retail has agreed to merge its retail operations with rival Bharti Retail of the Sunil Mittal-led Bharti Group to create one of India's biggest retail chains with a turnover of over Rs 15,000 crore and more than 570 stores across the country.

Future Retail stock closed at Rs 83.50, up 0.36 per cent, on the BSE.