Future Enterprises to raise Rs 3,000 crore from sale of insurance biz; aims to pare debt, avoid insolvency

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 percent 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 percent shares in FGIICL. "Now in the next 30-40 days, they will sell the remaining 25 percent stake of the General insurance business for another Rs 1,250 crores to another entity," a source said.