The Board of Directors of Future Lifestyle Fashions Limited at its meeting held today, has considered and approved the issue of 51,44,927 (Fifty One Lakh Forty Four Thousand Nine Hundred and Twenty Seven) Equity Shares of face value INR 2/- (Indian Rupees Two) each of the Company at an issue price of INR 414/-(Indian Rupees Four Hundred and Fourteen) per Equity Share (including premium of INR 412/- (Indian Rupees Four Hundred and Twelve) per Equity Share) aggregating to INR 212,99,99,778/- (Indian Rupees Two Hundred and Twelve Crore Ninety Nine Lakh Ninety Nine Thousand Seven Hundred and Seventy Eight) on preferential basis to International Finance Corporation ("IFC") (a Registered Foreign Portfolio Investor), in accordance with the provisions of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), as amended from time to time and subject to execution of requisite documentation, the approval of the shareholders of the Company and other applicable approval(s) and/or permission(s) from relevant regulatory authority.
IFC is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets.
The board approves issue of 96,61,835 (Ninety Six Lakh Sixty One Thousand Eight Hundred and Thirty Five) Equity Shares of face value INR 2/- (Indian Rupees Two) each of the Company at an issue price of INR 414/- (Indian Rupees Four Hundred and Fourteen) per Equity Share (including premium of I NR 412/- (Indian Rupees Four Hundred and Twelve) per Equity Share) aggregating to INR 399,99,99,690 (Indian Rupees Three Hundred and Ninety Nine Crore Ninety Nine Lakh Ninety Nine Thousand Six Hundred and Ninety) on preferential basis to FQS Trading Private Limited, a Promoter Group Entity, in accordance with the provisions of Chapter V of the SEBI ICDR Regulations and subject to execution of requisite documentation, the approval of the Shareholders of the Company and other applicable approval(s) and/or permission(s) from relevant regulatory authority.
The Relevant Date, in terms of Regulation 161 of the SEBI ICDR Regulations, for the purpose of pricing of the proposed preferential issues of Equity Shares would be 19 February 2020, which is the date 30 days prior to the date of the proposed Extraordinary General Meeting of Shareholders of the Company.
The proposed fund raise from IFC and Promoter Entity, would be utilized towards enhancing stake in subsidiaries & associates of FLFL and debt reduction. This apart from being EPS accretive, cost optimization and improving cash flows, will simplify FLFL's Operations and Investment structures.
Enabling resolution giving authority to issue of Non-Convertible Debentures (NCDs) / other securities on private placement basis, for a value upto Rs.400 Crore, in one or more tranches, within a period of one year, subject to approval by the Shareholders of the Company. This will be utilized towards replacing existing debts in the Company to improve maturity profile and reduce overall finance cost.
An Extraordinary General Meeting of the Company will be held on 20 March 2020 for obtaining Shareholders' approval for the proposed preferential issues of Equity Shares and enabling resolution for issue of NCDs / other securities on private placement basis.
Shares of Future Lifestyle Fashions Ltd was last trading in BSE at Rs.389.4 as compared to the previous close of Rs. 390. The total number of shares traded during the day was 145 in over 26 trades.
The stock hit an intraday high of Rs. 394.6 and intraday low of 388.15. The net turnover during the day was Rs. 56516.