IFC to invest $20 mn in Future Consumer

International Finance Corporation (IFC) will invest $20 million (Rs 134 crore) through equity-linked instruments in Future Consumer Enterprise Ltd, the Indian company said on Friday.

The investment from IFC will aid the company in fueling its growth plans and strengthening its balance sheet, the consumer goods maker said in a stock-exchange filing. 

IFC, the private-sector investment arm of the World Bank, will invest via compulsorily convertible debentures and equity shares. The debentures are convertible into shares within 18 months at a price of Rs 22.73 apiece.

Shares of Future Consumer were trading 2.3% lower at Rs 21.25 apiece on the Bombay Stock Exchange on Friday morning.

IFC joins Belgium's family-owned consumer sector-focused investment company Verlinvest, Singapore-based Arisaig Partners and Proterra Partners, previously known as Black River Asset Management, in investing in Future Consumer. 

VerInvest raised its holding in the food and FMCG arm of Kishore Biyani-led Future Group in February. The Indian company had decided to raise $45 million from Black River in December and another $10 million by issuing warrants to promoters. IFC's investment completes the current $75 million fundraising plan, Future Consumer said on Friday.

Future Consumer is part of retail entrepreneur Kishore Biyani-led Future Group. Its products include processed and frozen food, dairy and bakery items, juices, snacks, biscuits and basic food items such as rice, wheat, spices, pulses and sugar.

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