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Fashion & brands

Koovs shares rocket as Indian retail group subscribes for 29.9% stake

The AIM-listed India focused online fashion retailer said it would issue Future Lifestyle Fashions Limited with new ordinary shares to raise around £5.78mln in cash

Koovs PLC (LON:KOOV) saw its shares rocket in mid-afternoon trading Wednesday after Future Lifestyle Fashions Limited (FLFL) agreed to purchase up to a 29.9% stake in the company.

The AIM-listed India focused online fashion retailer said it would issue FLFL with 57,876,600 new ordinary shares at a price of 10p per share, a 45.5% discount on its last close price of 18.3p, to raise around £5.78mln in cash.

READ: Koovs shares jump as it signs £24mln deal with HT Media

FLFL is part of Future Group, the largest retail consortium in India, which owns over 60 brands and operates around 2,000 retail stores.

Koovs also said it was opening a bookbuild to raise up to £10mln of equity at a price of 15p per share.

Shares were up 34.8% at 24.7p.