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Future Retail seeks FIPB approval to raise FII stake

By FashionUnited

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Future Retail, has sought the Foreign Investment Promotion

Board's approval to increase foreign institutional investor holding in the firm to 49 percent from existing 24 percent. As per industry experts, this move would help Kishore Biyani's Future Group attract foreign capital without running into the stringent conditions associated with bringing in a foreign strategic partner.

As per sources close to the company, the BSE-listed arm of Future Group approached FIPB, the nodal agency to approve foreign investments in the country, on the behest of the Reserve bank of India. Earlier this year, the company had sought clearance from the central bank to increase FII investments in the company.

The RBI then asked the retailer to approach the FIPB. Future Group, which operates Big Bazaar and Food Bazaar chains, requires capital to deal with its debt as well as to expand at a time when local competitors are ramping up and global giants are on the verge of entering the market.
Future Group