Future Retail Ltd to seek shareholders nod through postal ballot for fund raising proposal

A meeting of Board of Directors of Future Retail Ltd was held on June 11, 2014 and the Board while considering the various options approved raising of funds upto Rs. 2,000 crore comprising of (i) through issue of shares / warrants on preferential basis to investors and promoters of approximately Rs. 400 crore and (ii) issue of shares of different classes on rights basis upto Rs. 1600 crore and accordingly has approved the fund raising resolutions. The Company proposes to utilise the proceeds of the various fund raising options at least 75% for its debt reduction program in addition to also fund its future growth.

The Board approved issue of 1,53,84,615 Equity shares of Rs. 2/- each at a price of Rs. 130/- per share (inclusive or premium of Rs. 128 per share) aggregating to Rs. 199,99,99,950/- on Preferential basis to Brand Equity Treaties Limited ("Investor").

The Board approved issue of 76,92,307 Warrants at a price of Rs. 130/- per Warrant aggregating to Rs. 99,99,99,910 to Future Corporate Resources Limited one of the Promoter Group entity with an option to the Warrant holder to acquire same number of Equity shares of Rs. 2/- each (at a premium of Rs. 128 per share) ("Warrants - A") withIn a period of 18 months pursuant to the provisions Chapter VII of Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2009 relating to Preferential lssues.

An Extraordinary General Meeting of the Company will be held on July 09, 2014 at Mumbai for obtaining Shareholders approval for the Preferential Issue of Equity Shares to Investor and Warrants - A to Promoter Group Company stated herein above. Accordingly, the relevant date for the pricing of both the aforesaid Preferential issues of equity shares and Warrants - A is June 09, 2014.

The Board approved issue of such number of warrants at such price as per SEBI ICDR Regulations per warrant not exceeding Rs. 100 crore to Future Corporate Resources Limited one of the Promoter Group entity with an option to the warrant holder to acquire same number of Class B (Series - 1) shares of Rs. 2/- each (having differential voting rights) ("Warrants - B") within a period of 18 months pursuant to the provisions Chapter VII of Securities & Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2009 relating to Preferential Issues. The relevant date for the pricing of Preferential Issues of Warrants - B will be decided based on the date of passing of resolution by members of the Company through postal ballot.

The Board approved issue of equity shares, Class B (Series 1) shares (having differential voting rights) or convertible securities ("Securities") upto Rs. 1600 crore to its existing shareholders on a rights basis as per the applicable SEBI Regulations and other applicable laws.

The Borad approved proposal for conducting of Postal Ballot for approval of the Shareholders for issue of Warrants - B convertible into Class B (Series 1) Shares to Promoters of the Company on preferential basis and Securities to the existing shareholders on Rights basis.

Shares of FUTURE RETAIL LTD. was last trading in BSE at Rs.135 as compared to the previous close of Rs. 145.5. The total number of shares traded during the day was 1162326 in over 21785 trades.

The stock hit an intraday high of Rs. 147.6 and intraday low of 133.1. The net turnover during the day was Rs. 164029882.

Source : Equity Bulls

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