L Catterton Asia, the Singapore-based private equity fund will buy nearly 10 per cent stake in Future Lifestyle Fashion through through a mix of preferential allotment and secondary purchase of shares. With the stock currently trading at Rs 421.7 a ...
L Catterton Asia, the Singapore-based private equity fund will buy nearly 10 per cent stake in Future Lifestyle Fashion through a mix of preferential allotment and secondary purchase of shares.
With the stock trading at Rs 421.7 on the BSE, the deal could be over Rs 800 crore at the current valuation.
The retailer said L Catterton Asia’s significant investment in FLFL will enable FLFL’s retail formats, Central and Brand Factory, and own brands to leverage the global fashion and retail expertise of L Catterton to further strengthen and expand the business. FLF, which runs Central, Brand Factory and more than a dozen brands including Indigo Nation and Lee Cooper, is the largest department store chain in the country.
"This investment reinforces FLFL’s position as India’s leading lifestyle fashion company while opening up avenues of global collaboration for us,” said Kishore Biyani, founder of Future Group.
Last week, the board approved issue of 38.22 lakh shares of face value Rs 2 of the company at a price of Rs 445.5 per share on a preferential basis to L Catterton's wholly owned firm Spectacular Investment Pte, which represented 2 per cent stake. L Catterton Asia is owned by LVMH and Groupe Arnault.
While L Catterton counts apparel retailer Genesis Luxury among its Indian portfolio firms, the firm has been exiting few of its investments over the past three years - it exited ethnic retailer Fabindia about two years ago while it sold its stake in the country’s largest multiplex chain operator PVR nearly three years back.
With a total retail space of 6 million sq ft spread across 90 cities, FLF has a diversified portfolio of over 30 brands straddling different segments and price points. The company has been logging double-digit same store sales growth in past four quarters and outperforming industry due to better inventory management and focus on premiumisation, say analysts.
Within its portfolio of owned, licensed and investee brands, the company has identified six power brands to drive growth, which are currently contributing about 64 per cent of FLF’s total brands. In fact, the company which has been selling Lee Cooper apparel has also got the sole rights for the brand's footwear business from next fiscal.