Kishore Biyani-led Future Retail Ltd. said its board has approved raising of long-term funds up to $500 million (around Rs 3,588 crore) for the acquisition of certain in-store infrastructure retail assets.
"The board has reconsidered the various funding options for the acquisition of the retail infrastructure assets and found it more efficient to fund the same through the USD denominated borrowings...," the company said in a BSE filing.
Accordingly, the board "approved raising of long term funds for the company subject to the applicable regulatory approvals and market conditions, through the offer, issue and of allotment of senior, secured USD-denominated notes for an aggregate amount not exceeding $500 million to meet the capital expenditure for the acquisition of certain in-store infrastructure retail assets, in one or more tranches", it added.
The board, at its meeting held on Saturday, also approved "the allotment of total 3.96 crore equity warrants at a price of Rs 505 per warrant to Future Coupons Private Limited (formerly known as Future Coupons Limited), a promoter group entity, on preferential basis against receipt of 25 percent of warrant subscription price (ie Rs 126.25 per warrant)."
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