PremjiInvest picks up stake in Future Lifestyle

After pumping in funds in online retailer Myntra, PremjiInvest is investing in Future

Lifestyle Fashion through PI Opportunities Fund-I by picking up 1.55 crore equity shares at Rs 80.5 per share, the company has announced through a BSE announcement. The fashion apparel company is also issuing 3.1 million shares aggregating to Rs 24.99 crores and 1.86 crore CCD’s aggregating to Rs 149 crores on preferential basis to Ryka Commercial Ventures, promoter group company.

As announced by the Biyani-owned company earlier, the fashion apparel, accessories and associated products arm of the Future Group would be utilizing the funds to reduce debt and expand into overseas markets such as Gulf, Sri Lanka, Japan and the UK with some its brands like Scullers, Clarks, Urban Yoga, to mention a few.

Future Lifestyle currently operates more than 4 million square feet of retail space and is aggressively scaling up the business through acquisition of smaller regional brands. The chain has been focusing on increasing high margin lifestyle retail business. Future Ventures India distributes its brands through retail chains like Lifestyle, Shoppers’ Stop, Reliance Trends, Pantaloons, Prateek and Mega Mart. It has made investment in fashion brands like Turtle, Celio, Clarks, Mother Earth, Tresmode and Mineral, among other. Recently, it acquired a 27.5 percent stake in Resource World Exim that retails Desi Belle brand in India.

Over a year ago, Future Retail tried to simplify its business structure by creating three different entities—Future Retail which houses its value retail (hypermarkets and supermarkets), Future Lifestyle Fashions for fashion and lifestyle retail, and Future Ventures India for the consumer products businesses.