Future Retail gets Sebi approval for up to Rs 1,600 cr rights issue

Kishore Biyani-promoted Future Retail has received the approval of Securities and Exchange Board of India (Sebi) to raise up to Rs 1,600 crore through rights issue.

The company had filed its application with the capital market regulator for the proposed rights issue in July.

Sebi issued its final observations on the draft offer documents on October 10, according to the latest update by the market watchdog.

The regulator had received the draft offer documents on July 22 through its lead manager Axis Capital Limited.

Issuance of 'observations' on offer documents by Sebi is considered as a clearance to the issuer to go ahead with the share issues through routes like IPOs, FPOs and rights issue.

Earlier in August, the market regulator had sought clarification regarding Future Retail's Rs 1,600 crore rights issue from the company's merchant banker.

In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.

Future Retail is the flagship company of Future Group and is into organised multi-format retail business in the country.

The home-grown company has retail stores in various formats, including food, fashion apparels, accessories and footwear, general merchandise, consumer durables and electronics.

The firm has pan-India presence with over 320 stores in nearly 100 cities.