New Delhi: Kishore Biyani-promoted Future Retail Ltd has received market regulator Securities and Exchange Board of India's (Sebi's) approval to raise up to Rs.1,600 crore through rights issue.
The company had filed its application with Sebi for the proposed rights issue in July. Sebi issued its final observations on the draft offer documents on 10 October, according to the latest update by the market regulator.
The regulator had received the draft offer documents on 22 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 such as 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 Rs.1,600 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 the Future Group and is into organized 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 firm has pan-India presence with over 320 stores in nearly 100 cities.