Future Lifestyle Fashions Ltd, part of Kishore Biyani-led Future Group, plans to raise Rs 450 crore (about $70 million) by selling a 51% stake in its fashion brand portfolio.
The Future Group’s fashion apparel and accessories arm said in a stock market disclosure on Wednesday that it will transfer all its investee brands to wholly owned unit FLFL Lifestyle Brands Ltd.
After the planned stake sale, Future Lifestyle will own 49% of FLFL Lifestyle Brands. The investee brands will continue to be run independently by their respective entrepreneurs.
“As these investments mature, there is still further significant value creation for both Future Lifestyle and the investors by monetising the stakes in these entities in later years,” it said.
The planned stake sale will help reduce Future Lifestyle’s debt. A portion of the money will go towards building its investee brands, the company said.
Future Lifestyle brands include Cover Story, Jealous 21, Mother Earth, Scullers, Indigo Nation, Desi Belle, Mineral, Giovani and Famozi.
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