Future Retail gets SEBI nod for Rs1,600 crore rights issue
Moneylife Digital Team 15 October 2014
SEBI issued its final observations on the draft offer documents filed by Kishore Biyani-promoted Future Retail. The company proposes to raise up to Rs1,600 crore through rights issue
Kishore Biyani-promoted Future Retail has received approval from Securities and Exchange Board of India (SEBI) for its rights issue worth Rs1,600 crore.
The company had filed its application with the SEBI for the proposed rights issue in July.
SEBI issued its final observations on the draft offer documents on 10th October, according to the latest update by the market regulator.
The regulator had received the draft offer documents on 22nd July through its lead manager Axis Capital Ltd.
Issuance of 'observations' on offer documents by SEBI is considered as a clearance to the issuer to go ahead with the share issues through routes like initial public offerings (IPOs), follow-on public offerings (FPOs) and rights issue.
Earlier in August, SEBI had sought clarification from the merchant banker of Future Retail regarding the company's Rs1,600 crore rights issue.
In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
Future Retail is the flagship company of 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 over 320 stores in nearly 100 cities.
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