May 19 2016, 10.18 AM IST || Pocket News Alert
May 19th 2016: Future Consumer Enterprise Limited (FCEL) has informed the stock exchanges that International Finance Corporation (IFC) will invest US$20 million (₹1,340 million) through equity linked instruments. For the said purpose, the Board has proposed to issue and allot equity linked securities to International Finance Corporation.
IFC is a member of the World Bank Group and is the largest global development institution focused exclusively on the private sector in developing countries. This partnership not only brings long term financing capital but would also help the company in incorporating global best practices in Environment, Health & Safety.
The investment from IFC will aid the company in fueling its growth plans and further strengthening its balance sheet. The Company had also recently secured an investment of US $ 55 million from USbased Proterra Partners (previously known as Black River Asset Management) and the promoters of the Company and this completes the current fund raising plan of US$75 million.
IFC and Proterra Partners join other marquee institutional investors such as Brussels-based Verlinvest, Singapore-based Arisaig Partners who have invested in the company.
The Board of Directors of the Company at its Meeting held on May 19, 2015 has, inter alia decided to:
1. Raise up to ₹1,340 million through the preferential allotment of Compulsorily Convertible Debentures (CCDs) at a face value INR 100,000 per CCD to IFC and 100 Equity Shares 2. The CCDs 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 ₹22.73 per share
FCEL has convened an Extraordinary General Meeting on Friday, 17th June 2016 at Mumbai for obtaining the Shareholder approval.
The above mentioned transaction is subject to final transaction documents, completion of satisfactory due diligence and other consents and approvals customary for such a transaction including shareholder approval.