Future Enterprises Ltd, a debt-ridden Future Group company, will raise around Rs 3,000 crore by selling its stake in the insurance business to repay the loan. Industry sources said this could save the company from going into insolvency proceedings.
On Thursday, Future Enterprises Limited (FEL) completed the sale of 25 per cent stake in its joint venture Future Generali India Insurance Company Limited (FGIICL) to Generali. The deal was done for Rs 1,266.07 crore. Even after this, FEL will continue to hold 24.91 per cent, directly and indirectly, in FGIICL.
What is the company’s plan?
“Within the next 30 to 40 days, they will sell the remaining 25 per cent stake in the general insurance business to another company for Rs 1,250 crore,” a source said. Apart from this, Future Generali India Life Insurance Company, a joint venture between FEL’s life insurance. Ltd. (FGILICL) also plans to sell 33.3 percent stake.
“The remaining 33 per cent stake in the life insurance business in separate deals will also be sold to Generali and another Indian company for a little over Rs 400 crore,” the source said, adding that Kishore Biyani’s also The group company will be completely out of the insurance business.
Also sold stake from Amar Chitra Katha
Through these deals, FEL will raise around Rs 2,950 crore and pay its lenders, sources said. “All this exercise by Future Group is to ensure that the debt of various companies can be repaid so that they can become regular and avoid facing insolvency proceedings,” the source said. FEL had defaulted on payment of Rs 2,911.51 crore to various bank consortium and lenders till March 31. Last Friday, Future Consumer Ltd, another Future Group company, announced the sale of its stake in Amar Chitra Katha Pvt Ltd for Rs 13.62 crore. Had it.