The board of Future Enterprises, led by Kishore Biyani, is set to meet today to discuss fund raising. The company will deliberate on plans to raise capital via issuance of bonds comprising debentures or non-convertible debt instruments or securities and/or any other instruments/securities including via the private placement route or from any other allowed means or any combination thereof, as may be decided by the board.
Meanwhile, the company in a late evening filing to the exchanges on Friday informed of deferring its board meet for earnings result for January-March FY20 to September 7 that was otherwise scheduled for August 28, 2020 (Friday). This is owing to non-completion of auditing of financial results.
Also as part of another development, lenders have been pushing the company to hasten the stake sale in its insurance business such that the group can pare its debt. The company has a stake of 49.91 per cent in the general insurance business while 33% holding in the life insurance. For the general insurance business, SBI General will integrate Future Enterprises' Future Generali India Insurance Co Ltd with itself. However for the life insurance business, the hunt for the likely takeover is still on.
Further as per several media reports, the stake sale of Future Enterprises' retail business to Reliance Industries, which was to be decided today, has also been deferred. As per sources from the banking industry, even after sealing the deal with RIL, banks will not be able to recover their full dues. On the company exposure of as much as Rs. 12000 crore, RIL has asked lenders to take a haircut of up to 40%. Also, Future Group's promoter entities owe another Rs. 11970 crore to banks.
On the likely deal with RIL, Futures group stocks rallied on Friday with its market capitalization crossing Rs. 14000 crore.