In order to finance its various expansion plans and business initiatives, Future Consumer Enterprise (FCEL) is planning to raise around Rs 368 crore from promoters and PE fund Black River Food 2. The fund raising is subject to various regulatory requirements.
The food company will issue compulsorily convertible debentures (CCDs) of face value Rs 100,000 per CCD to Black River Food 2, a wholly owned subsidiary of Food Fund. These debentures are convertible into equity shares of FCEL within a period not exceeding 18 months from the date of issue of CCDs, at conversion price of Rs 22.73 per share. Further, the company will raise USD 10 million through an issue of warrants to its promoters.
Meanwhile, in terms of this arrangement, a separate long-term supply agreement will also be entered into between FCEL and FRL for supply of branded products to Future Retail (FRL).
Future Consumer Enterprise is the alternate investment arm of Future Group, India's largest retailer. The Future Group is a business group, led by Kishore Biyani, focusing on consumption-led businesses in India and is also one of India’s leading organized multi-format retailers.
