The flagship fashion business of Kishore Biyani owned Future Group, Future Lifestyle Fashion gets its 6 percent stake acquired by Blackstone, the world’s largest private equity firm, for about Rs. 545 crore (80 million dollars).
Capital infusion in FLF through a combination of equity and structured debt will be done by Blackstone and this new funding will be focused on expanding capital of Biyani’s deep discount retail format Brand Factory. Finding similarity to US’ TJ Maxx, the Brand Factory will also be looked for improvement.
11.6 million Shares of Future Lifestyle Fashion (FLF) have been sold by the promoter entity Ryka Commercial Ventures Private Ltd to Blackstone Tactical Opportunities Fund, BTO FBI III. This share transaction has been done in a secondary market transaction. As per the data available on India’s National Stock Exchange (NSE), the transaction value was Rs466.25 per share (about 6.7 dollars apiece). This was done in a secondary market transaction.
Economic Times reported that private equity firm Blackstone will infuse capital in FLF through a combination of equity and structured debt. About Rs. 300 crore would be raised from AION Capital Partners through preferential allotment of shares as stated by the owner of Central and Brand Factory retail chains.
53.43 percent of FLF is owned by Biyani and family at present through entities such as Ryka Commercial Ventures, Central Departmental Stores and Future Enterprises among others. L Catterton and PremjiInvest are other investors in FLF who together own around 17 percent, L&T Mutual Fund that owns 4 percent and LIC with 6.5 percent stake include other investors.
Biyani has been leading the company to be the biggest clothing retailer of country by volume. It had sold about 30 crore garments the previous year. The latest annual report of the company suggests that Biyani group has been aiming to increase its market share by 450-500 basis points in India’s lifestyle fashion market. The fashion market is getting competitive increasingly and so active involvement in the same is requisite.
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