The world’s biggest private equity firm acquires 6 percent in Future Lifestyle Fashion

New York – Blackstone, the world’s biggest private equity firm has acquired about 6 percent stake in India’s Future Lifestyle Fashion, the flagship fashion business of Kishore Biyani-owned Future Group, for about Rs 545 crore (circa 80 million dollars.)

As reported by the ‘Economic Times’ earlier this month, private equity firm Blackstone will infuse capital in FLF through a combination of equity and structured debt. The new funding will be dedicated to capital expansion of Biyani’s deep-discount retail format Brand Factory (similar to US’ TJ Maxx), as well as improving his promoter-level leverage, explained the company in a media briefing.

Promoter entity Ryka Commercial Ventures Private Ltd has sold 11.6 million shares of Future Lifestyle Fashion (FLF) to Blackstone Tactical Opportunities Fund, BTO FBI III, in a secondary market transaction. The transaction value was Rs 466.25 per share (about 6.7 dollars apiece), according to data available on India’s National Stock Exchange (NSE).

India’s fashion industry leader, Future Group, spearheads growth in the region with new funding

On a related note, the owner of Central and Brand Factory retail chains, said in mid-July it will raise about Rs 300 crore (43.5 million dollars) from AION Capital Partners through preferential allotment of shares.

Today, Biyani and family own 53.43 percent of FLF through entities such as Ryka Commercial Ventures, Central Departmental Stores and Future Enterprises among others. Other investors in FLF include L Catterton and PremjiInvest, which together own around 17 percent, L&T Mutual Fund that owns 4 percent, and LIC with 6.5 percent stake.

Noteworthy, Biyani has been spearheading the company to be the country's biggest clothing retailer by volume, and the group sold about 30 crore garments last year. The company, in its latest annual report, said it aims to increase in market share by 450–500 basis points in India's lifestyle fashion market that is increasingly getting competitive.

Photo credits: Future Lifestyle Fashion, corporate web