Future Retail is planning to mop-up around Rs 700 crore by selling some stake in its logistics arm ‘Future Supply Chain Solution’ possibly through an initial public offering later this year.
The firm’s board of directors approved divesting a part of its stake in the subsidiary through IPO or other modes. The stake sale will help the company to trim Future Retail’s interest cost by Rs 150-200 crore and fund expansion of the business. The company currently has outstanding debt of around Rs 4,000-4,500 crore.
Future Retail (formerly known as Pantaloon Retail (India)) is India’s leading retail chain and part of Indian conglomerate Future Group. It operates retail space spread over 11 million square feet. It has a network of more than 1000 stores across 63 cities in India and has employee strength of 30,000 people.
