InvestorQ : Why is Future group again trying to raise funds in the market? Is it to reduce their debt?
Mitali Bhutta made post

Why is Future group again trying to raise funds in the market? Is it to reduce their debt?

Answer
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Dawn Cherian answered.
5 months ago


Debt is the main problem for the Future group companies and that is what they are trying to reduce. Future Lifestyle Fashions is looking to raise funds and also pushing for flexible debt repayment to revive operations. The prices of all the group companies have fallen sharply in the last few weeks. Hence Future Lifestyle Fashions is planning a rights or preferential issue to raise Rs.225 crore. Earlier, Future Consumer had approved plans to raise Rs.300 crore via a rights issue. The fund raising plans are to beef up equity as business has been badly impacted by the COVID-19 syndrome. It already has marquee investors like Catterton, Premji Finvest and Blackstone. In most of the group stocks, a large chunk of the promoter equity is pledged and that has resulted in a sharp fall in the stock prices.