Future Retail has filed initial papers with market regulator Sebi to raise up to Rs 1,600 crore through a rights issue. As per the draft letter of offer of Future Retail filed with Sebi, the company would issue certain classes of shares to its public shareholders on a rights basis.
“Total proceeds from the issue of equity shares and class B shares would aggregate up to Rs 1,600 crore,” Future Retail said in the document.
In a rights issue shares are issued to existing investors as per their holding at a pre-determined price and ratio. The funds from the issue would be utilised towards pre-payment of certain borrowings availed by the company as well as for general corporate purposes.
(Published 29 July 2014, 18:42 IST)
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