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Monday, 08 August 2011 |
Future Capital Holdings (FCH) the non-banking financial arm of Future Group with assets
worth Rs 3,000 crores comprising retail, wholesale and mortgage loans is being eyed by PE Funds. Four top PE players — Blackstone, Carlyle, Apax Partners and Texas Pacific Group — are vying to buy a 61.06 per cent stake in FCH. The stake may cost as much as Rs 10 billion. Both Pantaloon Retail and Future Group founder-chairman Kishore Biyani have a stake in Future Capital. Pantaloon has a 54 per cent stake in Future Capital. The funds raised from the stake sale will be used to repay part of its debt. Morgan Stanley has got the mandate for the deal. The deal size for this 61.06 per cent is expected to be Rs 800-1,000 crores.
Pantaloon has a debt of around Rs 3,400 crores while Future Group's debt stands at Rs 4,800 crores across retail businesses including its financial services business. Since the stake sale was reported, shares of FCH have moved 33 per cent (in less than a month) from Rs 139.90 to Rs 186.10, between July 1 and July 29. The company’s numbers improved substantially in the last one year. According to its March-end results, the loan book has doubled and non-performing assets are down. The company’s net worth was Rs 750 crores for the financial year ended March 31, 2011. This included both wholesale and mortgage loans. |
