Future Consumer Ltd owned by Kishor Biyani is all set to raise Rs 300 Crore through rights issue. The board of the FMCG company came to this decision on Saturday. Rights issue is an issue of shares offered at a special price by a company to its existing shareholders in proportion of their holding to old share. This means that Biyani and his family who own 45.32% of the total stock will have to invest a minimum of Rs 135 crore in the rights issue.
The company though hasn’t decided the pricing of the rights issue and the number of the shares yet for the existing shareholders. Future consumer deals with over 30 brands ranging from packed foods to personal and home care categories. The firm is currently dealing with high debt pressure and the lockdown has made the situations even worse for them.
Future Consumers have been dealing with hard times lately. This has prompted them to look for buyers for several of its businesses like Future Supply Chain Solutions. Their rating has also been downgraded by Icra after it defaulted its coupon payments.