Future Enterprises to raise Rs 3,000 cr to avert insolvency proceedings

“Now in the next 30-40 days, they will sell the remaining 25 per cent stake of the General insurance business for another Rs 1,250 crores to another entity,” a source said.
Future Enterprises to raise Rs 3,000 cr to avert insolvency proceedings
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NEW DELHI: Debt-ridden Future Group firm Future Enterprises Ltd expects to raise around Rs 3,000 crore from selling its stake in the insurance business to pare debt, which may save the company from facing the rigour of the insolvency process, according to industry sources.

Earlier on Thursday, Future Enterprises Ltd completed the sale of its 25 per cent equity in Future Generali India Insurance Company Ltd (FGIICL) to joint venture partner Generali for Rs 1,266.07 crore.

After this transaction, FEL will directly and indirectly continue to hold 24.91 per cent shares in FGIICL.

“Now in the next 30-40 days, they will sell the remaining 25 per cent stake of the General insurance business for another Rs 1,250 crores to another entity,” a source said.

Besides, FEL is also planning to sell its 33.3 per cent stake in its Life Insurance JV - Future Generali India Life Insurance Company Limited (FGILICL).

“Also in separate deals remaining 33 per cent stake of Life insurance business will be sold to Generali and separately to one more Indian entity for a little above Rs 400 crore,” he said, adding after this the Kishore Biyani-led group firm would completely exit the insurance sector. From these exercises, FEL would raise nearly Rs 2,950 crore and will pay to its lenders, he added.

“This is part of the exercise that Future Group is doing to pay off as much debt of various cos so they can be regularised and do not go into insolvency,” he said.

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