Future Capital Holdings’ owner, Kishore Biyani, after retiring Rs 6,000 crore worth of debt with a three back-to-back deals in the past one month, has refuted the buzz of being in talks for selling stake in Big Bazaar and Food Bazaar chains.
In recent weeks, the retail industry remained abuzz with rumor that the Future Group was in talks with billionaire Mukesh Ambani to sell stake in its flagship Big Bazaar hypermarket network, which accounts for almost 65% of revenues of Pantaloon Retail (India).
Three months back, Reliance Retail and Future Group had explored the possibility of a partnership, however, AV Birla Group moved faster in clinching the Pantaloons department chain helping Future Group to improve its precarious financial situation.
Biyani, after repaying Rs 6000 crore of debt, is planning to raise Rs 1,650 crore by October by divesting stake in insurance and stationery joint ventures, the consumer electronics chain and home furnishing network, in order to reduce listed entity’s Pantaloon debt, which is aggregated to be around Rs 5,500 crore.
Recently, Pantaloon Retail (India) and its wholly owned subsidiary, Future Value Retail, entered into Share Purchase Agreement (SPA) with Cloverdell Investment, one of the affiliated entity of Warburg Pincus, to sell its holding in Future Capital Holdings (FCH) in two tranches representing a maximum of 53.67% but subject to a minimum of 40% of the equity share capital of the company.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 908.70 |
| Shriram Finance | 1036.50 |
| Aditya Birla Capital | 340.20 |
| Chola Invest & Fin. | 1579.65 |
| Tata Capital | 337.60 |
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