Kishore Biyani-promoted Future Retail has received market regulator Sebi's approval to raise up to Rs 1,600 crore through rights issue, says a PTI report.
The company had filed its application with the Securities and Exchange Board of India (Sebi) 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 regulator. 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, Sebi had sought clarification from the merchant banker of Future Retail regarding the company's Rs 1,600 crore rights issue. In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
Besides, Future Retail is the flagship company of Future Group and is into organised multi-format retail business in India.
The 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.
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