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Future supply chain plans to raise 1k cr

13 Jun 2011 Evaluate

Future Group’s logistics arm is planning to raise 1,000 crore by selling stake either through an initial public offering or private equity placements in the next 15 months. It will raise funds through a combination of debt and equity. It could be private equity placements, IPO or even existing stakeholder Li & Fung increasing its stake. The firm will decide the route next year.

In 2009, Hong Kong-based supply chain giant Li & Fung Group had bought a 26% stake in the company for $30 million. At present, Future Supply Chain gets more than 70% of its 600-crore business from servicing retail operations of its parent company. However, the company is also de-risking its business model and tapping other opportunities by adding newer clients across consumer sectors. In the next few years, its parent company would be contributing around 30% of its total sales with the rest coming from other clients. While a majority of their clients are in the consumer products and apparel segments, their next big focus would be auto and even retail sector.

Future Enterprises Share Price

0.49 0.00 (0.00%)
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Peers
Company Name CMP
Avenue Supermarts 4140.70
Trent 2837.30
Vishal Mega Mart 118.25
Aditya Birla Lifesty 100.80
PN Gadgil Jewellers 549.60
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