IFC to invest about $30m in Indian fashion retailer Future Lifestyle

Future Group chairman Kishore Biyani. Photo: Hemant Mishra/Mint

The International Finance Corporation (IFC), a part of the World Bank Group, will invest about $29.6 million (Rs 213 crore) in Kishore Biyani-led Future Lifestyle Fashions Ltd (FLFL), the latter said in a regulatory filing.

The fashion retailer will issue 5.14 million equity shares at an issue price of Rs 414 apiece to IFC as part of the investment deal.

Future Lifestyle will also issue about 9.66 million shares to the promoter group entity, FQS Trading Pvt. Ltd, to raise additional Rs 400 crore, the filing added.

The proposed fund raise from IFC and promoter entity, would be used towards enhancing stake in subsidiaries and associates of FLFL and to pare debt. This apart from being EPS accretive, cost optimisation and improving cash flows, will simplify FLFL’s operations and investment structures, the company said.

FLFL is one of India’s largest integrated branded fashion companies and also counts L Catterton, Apollo Management, and PremjiInvest among its large stakeholders. The group has a diversified portfolio spanning 30 fashion brands (both owned and licensed) such as Lee Cooper, Indigo Nation, Jealous 21, and BARE among others. FLFL generated revenue of Rs5,728 crore with an EBITDA of Rs564 crore and PAT of Rs189 crore for the FY ended March 2019.

Last July, it was reported that AION Capital Partners, a joint venture of US-based Apollo Global Management and Indian private equity firm ICICI Venture, would invest Rs 300 crore in Future Lifestyle.

In November, global private equity major Blackstone invested about $244 million (Rs 1,750 crore) by way of debentures in Ryka Commercial Ventures Pvt Ltd, the holding company of FLFL. As a part of the transaction, Blackstone had also acquired a 6 per cent stake in FLFL through a block deal with Ryka.

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.