LONDON (Alliance News) - Shares in Indian online clothing retailer Koovs PLC surged Wednesday after it said that it will raise GBP15.8 million via a share subscription agreement with retail group Future Lifestyle Fashions Ltd and a separate share bookbuild.
Koovs shares were trading 34% higher at 24.50p each.
Koovs will issue 57.9 million shares to Future Lifestyle at 10 pence each, raising GBP5.8 million in cash. Following the subscription, Future Lifestyle will own 29.9% stake in Koovs.
The company will additionally raise up to GBP10 million issuing new shares at 15p per share.
"This marks a giant step forward in the Koovs' journey to win the e-fashion market in India. Future Lifestyle Fashions with its leadership position as an integrated branded fashion player and the Koovs brand and technology platform are an unbeatable combination. This investment will bring enormous benefits to our customers and partners as well as significant value for all shareholders," said Koovs Chairman Waheed Alli, who also will invest GBP1.5 million in the equity raise.
Admission of the new shares is expected on July 19.
