The board of directors of Future Lifestyle Fashions on Thursday approved fund raising plans to the tune of ₹613 crore from IFC and promoter entity.

The board has considered and approved the issue of 51.45 lakh shares of the company at a price of ₹414 a share, aggregating to ₹213 crore on preferential basis to International Finance Corporation, a registered foreign portfolio investor. IFC is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets.

The board has also approved issue of 96.62 lakh shares at an issue price of ₹414, aggregating to ₹400 crore on preferential basis to FQS Trading Private Ltd, a promoter group entity.

The relevant date for the purpose of pricing of the proposed preferential issues of equity shares would be February 19, which is thirty days prior to the date of the proposed Extraordinary General Meeting of Shareholders of the company.

The proposed fund raise from IFC and Promoter Entity, would be utilised towards enhancing stake in subsidiaries & associates of FLFL and debt reduction.

This apart from being EPS accretive, cost optimisation and improving cash flows, will simplify FLFL's operations and Investment structures.

Besides, the board has also passed an enabling resolution giving authority to issue of non-convertible debentures (NCDs)/other securities on private placement basis, for a value up to ₹400 crore, in one or more tranches, within a period of one year, subject to approval by the shareholders of the company.

The funds would be used towards replacing existing debts to improve maturity profile and reduce overall finance cost.

An EGM will be held on March 20 for obtaining shareholders' approval for the proposed preferential issues of equity shares and enabling resolution for issue of NCDs/other securities on private placement basis.

Shares of Future Lifestyle Fashions closed 2.3 per cent lower at ₹380 on the BSE