FEL to sell its 16 pc stake to Future Lifestyle

Homegrown retail major Future Enterprises (FEL) will be selling its 16 per cent stake to Future Lifestyle for Rs 380 crores, they have told the BSE. FEL owns the physical assets or the store formats and infrastructure assets in the stores of Future Retail and Bharti Retail. Future Enterprises was carved out of restructuring of Kishor Biyani led Future Group . The erstwhile Future Retail Limited (E-FRL), the flagship company of the Future Group was split into two separate entities viz Future Retail and FEL. According to the arrangement, Future Retail is involved in carrying out retail trade whereas all infrastructure assets are owned by FEL.

Valued at around Rs 800 crores at current market prices, it generates over Rs 1,000 crores EBITDA from its real-estate and rental logistic business. FEL has over Rs 4,500 crores worth of investments and a debt of equal amount. Market analysts feel the company plans to monetize all its investments over the years.