Debt-ridden Future Group firm Future Enterprises expects to raise around Rs 3,000 crore from selling its stake in the insurance business to pare debt. This may save the company from facing the rigour of the insolvency process, according to industry sources.  

Earlier on Thursday, Future Enterprises completed the sale of its 25 per cent equity in Future Generali India Insurance Company (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 per cent shares in FGIICL. 

“Now in the next 30-40 days, they will sell the remaining 25 per cent stake of the general insurance business for another Rs 1,250 crore to another entity,” a source said. 

Besides, FEL is also planning to sell its 33.3 per cent stake in its life insurance JV – Future Generali India Life Insurance Company (FGILICL). 

“Also in separate deals remaining 33 per cent stake of life insurance business will be sold to Generali and separately to one more Indian entity for a little above Rs 400 crore,” he said, adding that after this the Kishor Biyani-led group firm would completely exit the insurance sector. 

From these exercises, FEL would raise nearly Rs 2,950 crore and would pay to its lenders, he added. 

“This is part of the exercise that Future Group is doing to pay off as much debt of various companies so (that) they can be regularised and do not go into insolvency,” he said. 

On March 31, FEL had defaulted on repayment of Rs 2,911.51 crore of loans to the consortium of banks and lenders. Later, it had also missed a 30-day review period according to the scheme of one-time restructuring for COVID-hit companies with its consortium of banks.