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Future Retail Q4 net profit declines, aims to raise Rs 700 cr

By Sujata Sachdeva

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Future Retail, part of the Kishore Biyani led Future Group that operates Big Bazaar and Food Bazaar reported a stand-alone net profit decline of 75.52 percent to Rs 5.32 crore for the fourth quarter ended December 31, 2014. The group has been dealing with the debt issue for quite some time and also undertook restructuring process to bring it down. However, not the company plans to raise Rs 700 crores by selling its investments in subsidiary Future Supply Chain Solutions.

Future Retail’s board has approved the divestment and an authorized committee will consider various options such as offer for sale as part of initial public offering, sale to private equity or strategic investor, the company said in a BSE filing. In January, the company had raised Rs 1,600 crore through a rights issue to reduce debt that stood at Rs 6,200 crores at the end of March 31, 2014.

The group might now consider hiving off its stakes in insurance joint venture once the regulations governing foreign investment for the sector are notified by the government, remaining 17-18 percent stake in Pantaloons to a private equity firm worth about Rs 225 crores, two equal joint ventures with Apollo Textile Mills and Gold Mohur Mills in Mumbai, 10 percent stake in Future Consumer Enterprise and a 15-18 percent in Future Lifestyle Fashion and a joint venture with the US-based Staples.

Future Retail