- Biyani and family own 53.43 percent of the listed FLFL through a different organization such a Ryka Commercial Ventures, Central Departmental Stores and Future Enterprises among others.
- FLFL is the flagship fashion business of Future Group. It has more than 300 stores in more than 90 cities.
Kishore Biyani’s Future Lifestyle Fashions(FLF), owner of retail chains Central and Brand Factory along with several clothing brands have struck a deal with Blackstone, the world’s largest private equity firm and stitched up a $250 million investment. FLF is one the subsidiaries of the parent company Future Group.
The primary flow of capital will be through structured debt and a combination of equity which will fund the capital expansion of Biyani’s deep-discount retail format Brand Factory, which is based on the US retailer TJ Maxx. An announcement on Friday is expected after the meeting of the company’s board.
The time period of the credit line will be for 5 years with a fixed coupon while the equity upside is supposed to follow through Blackstone’s stake in FLFL’s operating company. Blackstone will join Investors such as L Catterton and Premjiinvest which together own 17 percent and Blackstone will pick 6-7 percent holding. Other key equity investors include L&T Mutual Fund (4%) and LIC (6.5%).
Biyani and family own 53.43 percent of the listed FLFL through a different organization such a Ryka Commercial Ventures, Central Departmental Stores and Future Enterprises among others.
Financial Institutions have been promised 26.4 percent of the promoter holding.
The current market capitalization of the company is Rs 9,008.92 crore.
Biyani has started consolidating the family ownership in few holding companies in order to avoid conflicts of cross-holdings among group companies and help them streamline the operating firms for the next generation.
One of the existing investors Aion is receiving a partial payout and is likely to roll over $50 million out of its $110 million exposures. Aion is a joint venture between ICICI Bank and Apollo Global Management who backed Biyani’s family office and promoter firms with funding for the holding companies in 2017.
Experts said, “ The association with Blackstone will be likely based on the closer relationship that may help Biyani’s retail and real estate empire.”
Blackstone also runs one of the largest real-estate focussed funds in the world and is the largest owner of office space in the country.
FLF is the flagship fashion business of Future Group. It has more than 300 stores in more than 90 cities, taking over a 5.7 million sq ft. of retail space. It also owns and markets leading brands through Central and Brand Factory, exclusive brand outlets and other multi-brand outlets. It was created after the demerger of lifestyle fashion businesses of Future Retail and Future Ventures.