Future Ventures India Ltd, Kishore Biyani’s investment and business management firm, has increased its stake in Indus-League Clothing Ltd to over 90 per cent. Future Ventures has said in a filing that it has acquired another 5.14 per cent stake in the designer, manufacturer and retailer of readymade garments to up its holding to 90.84 per cent. However, the deal size was not disclosed.
Indus-League has brands like Indigo Nation, John Miller, Scullers and Urban Yoga. The company has a market presence in India, Sri Lanka, the Middle East, the UAE and Bahrain.
According to its red herring prospectus, Future Ventures holds stakes in the following companies through Indus-League – men’s apparel and fashion firm Celio Future Fashion (49.99 per cent), Lee Cooper (India) Ltd (100 per cent) and Turtle Ltd (26 per cent). Indus-League also holds 5-6 per cent stake in SSIPL Retail, which sells footwear and sportswear products of brands like Nike.
Biyani’s Future Group had initially picked up around 15 per cent stake in Indus-League for Rs 50 crore in March, 2008, and invested a total of around Rs 385 crore in the company to increase its stake to 85.7 per cent.
As of February 28, 2011, Indus-League operated through 88 exclusive brand outlets and 128 multi-brand outlets, including 81 Future Group outlets.
For the nine-month period ended December 31, 2010, Indus-League had aggregate sales of Rs 199.70 crore and net profit after tax of Rs 3.7 crore.
The share price of Future Ventures went up more than 3 per cent in the morning trade to reach a high of Rs 9.77 per scrip, but later came down to Rs 9.48. Future Ventures, modelled after Warren Buffet’s Berkshire Hathway, had raised Rs 750 crore through its IPO earlier this year, issuing shares at face value of Rs 10 each.
Future Ventures’ other investments in the fashion and apparel space include women’s apparel firms AND Designs and Biba Apparels, and fashion accessories firm Holii Accessories (a joint venture with Hidesign India Pvt Ltd).