Future Retail to raise Rs 2,000 crore via issue of shares

Future Retail is planning to raise Rs 2,000 crore by issuing shares to promoters and investors. The company will raise Rs 400 crore through issue of shares and warrants on preferential basis to investors and promoters and about Rs 1,600 crore through issue of shares on rights basis. 75 percent of the total funds raised will be used to reduce debt. The company will issue 15.3 million shares of Rs 130 each on preferential basis to Brand Equity Treaties, an investor in the company, for Rs 199.99 crore. It will also issue 7.6 million warrants at a price of Rs 130 each, aggregating Rs 99.99 crore to Future Corporate Resources, a promoter group entity with an option to the warrant holder to acquire same number of shares within a period of 18 months. Future Retail has debt of Rs 5,500 crore on the books and the company paid interest of Rs 155.3 crore in March quarter of last financial year, which is 98% of its profit before interest and taxes (PBIT). The company's debt is around 1.8 times of the equity.