Future Consumer Enterprise (FCEL),the food arm of Future Group, is planning to raise about Rs368cr($55m) from Black River Asset Management, to fund its business expansion.
Future Consumer Enterprise (FCEL), the food arm of Future Group, is planning to raise about Rs368cr ($55m) from Black River Asset Management, to fund its business expansion.
With the funds, FCEL also plans to improve the costs and maturity profile of existing debt of the company.
In a filing at the Bombay Stock Exchange, FCEL said that its board has approved raising of around Rs301.5cr ($45m) through preferential issue and allot equity-linked securities to Black River Food 2, a fully owned unit of Black River Food 2 Fund.
Black River is the private equity investment unit of food processing company Cargill.
FCEL will issue convertible debentures (CCDs) of face value Rs100,000 to Black River Food.
FCEL said: "The CCDs are convertible into equity shares of the company within a period not exceeding 18 months from the date of issue of CCDs at conversion price of Rs22.73 per share."
The company plans to raise another $10m through preferential allotment of warrants to its promoters and / or promoter group entities.
"The warrants are convertible into equity shares at a conversion price of Rs22.73 per share, exercisable at a date within 18 months from the date of allotment of warrants," FCEL said.
The food retailer is also entering into a master franchisee arrangement with its sister concern Future Retail (FRL), for the latter to manage the convenience stores network of KB's Fair Price, KB's Conveniently Yours, Big Apple and Aadhaar.
FCEL is an integrated food company that is involved in sourcing of essential food items including rice, wheat, spices and pulses, as well as grading, processing, packaging and branding these items.
In October, Future Group partnered with Patanjali Ayurved for marketing ayurvedic FMCG products across India.
