Kishore Biyani’s Future Ventures plans to raise its stake in
women’s ethnic wear maker Biba Apparels. It is also seeking new opportunities to invest in the fast moving consumer goods and fashion sectors. Currently, Future Ventures holds 17.3 per cent stake in Biba, which will be upped to 28 per cent soon. Future Ventures promoted by various Future Group companies has invested in several apparel companies including Indus League Clothing, AND Designs, Global Desi and Biba Apparel. The company plans to raise Rs 750 crores through its initial public offering of shares. The money will be used to raise stakes in some of the companies it has already invested in and also seek new acquisition opportunities.
Out of the funds raised via the IPO, Rs 120-150 crores will be invested in existing businesses, while the remaining will be used for acquisitions. Future Ventures has so far invested around Rs 450 crores in apparel makers, and Rs 250 crores in processed foods and consumer goods space. The promoters currently hold about 60 per cent stake in Future Ventures and their stake will be diluted by 45 per cent via the share sale.
Future Ventures seeks to promote and participate in innovative and emerging business ventures in India. The company intends to play a role in powering entrepreneurship, by promoting or participating in diverse business activities, primarily in consumption-led sectors. They will also participate in businesses where it exercises control or influence, and can add value as active shareholders, by utilizing the experience and knowledge of the Future Group, and specifically its parent, Pantaloon Retail.