Future group to exit Nike retailer

Wednesday, 02 November 2011

On grounds of limited influence in the SSIPL management and to avoid getting locked in for a year as per SEBI norms once SSIPL declares its IPO, the Future Group has decided to sell its minority shareholding in Rishab Soni promoted SSIPL Retail. SSIPL is the largest retailer and manufacturing partner of Nike shoes in India. The stake is held by BSE-listed Future Ventures through its subsidiary Indus-League Clothing, which also has exclusive rights to Lee Cooper branded shoes and apparel in India. In contrast to its 100 per cent ownership of Lee Cooper (India), Indus-League held 6.57 per cent of SSIPL Retail on an undiluted basis and 5.56 per cent on a fully diluted basis.

SSIPL Retail is planning to raise around Rs 100 crores through the IPO. On September 29 this years, SSIPL filed a draft offer document with the capital markets regulator Securities & Exchange Board of India (SEBI) for a public issue of 34.72 lakh shares, including an offer for sale of 5.94 lakh shares by Cyprus-based investor HBP Holdings. Reportedly, approximately 17 per cent of the proceeds of the issue will go to HBP while the rest net of expenses will accrue to SSIPL.

The company plans to invest the funds raised through this IPO to expand retail operations of its brands Beverly Hills Polo Club, Levi’s, Sierra and Nike amongst others. SSIPL is manufactures and supplies goods to leading footwear brands like Reebok, Nike, Lotto, Skechers and Puma.

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