Future Lifestyle Fashions lists, exits apparel firm Biba

Future Group’s lifestyle business housed under a new firm Future Lifestyle Fashions Ltd (FLF) got listed on the stock exchanges on Tuesday. The firm, which was created through the demerger of the lifestyle fashion businesses of Future Retail Ltd (formerly Pantaloon Retail (India) Ltd) and Future Ventures India Ltd, also said it has signed a deal to exit its investment in fashion apparel firm Biba Apparels Pvt Ltd.

Future Lifestyle Fashions said, “As part of strategy to look for opportunity to make divestments of investments which provide appropriate valuation, the company has executed definitive documents for sale of its entire holding of 25.8 per cent in Biba Apparels.”

The company did not share further details of the deal value nor the name of the buyer.

Last week, VCCircle first reported that private equity firm Warburg Pincus has struck a deal to buy a significant minority stake in Biba by acquiring the entire stake held by Future Ventures (which has now moved to Future Lifestyle Fashions) besides purchase of some stake held by the promoter Siddharth Bindra.

In a simultaneous transaction, Faering Capital through its India Evolving Fund, has also infused capital in Biba Apparels and picked a small stake.

Last year, the Future Group announced a restructuring whereby it is consolidating the fashion retailing business of the group under a new listed entity in a move aimed to reduce debt on flagship Pantaloon Retail India (now renamed Future Retail) and unlock value. Pantaloon Retail and Future Ventures, the two public listed group firms, demerged their fashion businesses into Future Lifestyle Fashions Ltd, a firm which is now a separate listed company.

Future Lifestyle Fashions opened the day at Rs 148 a share and closed at Rs 140.65 a share on debut, with a market capitalisation of Rs 2,172 crore. This makes it, by far, the most valued public listed group firm of Future Group.

(Edited by Joby Puthuparampil Johnson)

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