Debt-ridden Future Retail, on May 27, said it was raising up to Rs 650 crore approved by its board through issuing non-convertible debentures (NCDs) to pare debt.
The company said in a BSE filing that the NCDs would be issued on private placement basis in one or more tranches.
“The Board has also authorised the Committee of Directors to decide on matters and transactions relating to aforesaid proposed issuance and allotment of NCDs including but not limited to finalisation and approval of terms and conditions of issue, number of NCDs and timing of the issue from time to time,” the filing said.
The funds will be used mainly for replacing the company's existing high cost current or near term maturity debts requirements.
The move comes after Future Retail's promoter Kishore Biyani defaulted on loans in March and its share price took a plunge.
Several rating agencies as Standard & Poor's and Fitch have downgraded the credit ratings of Future Retail after the default.
Future Retail operates over 1,500 stores that cover over 16 million square feet of retail space in 400 cities. It has large format stores, Big Bazaar, its flagship chain besides small store neighbourhood retail chains, EasyDay Club and Heritage Fresh.
(With PTI inputs)
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