Future Capital Holdings (FCH), the asset management and consumer credit business of Pantaloon Retail, is being spun off and separately listed on the bourses. It is learnt that Pantaloon Retail will seek approval for this move at its board meeting on Saturday.
UBS Investment has recently valued Future Capital at around $670 million (about Rs 2,700 crore). The move is a bid by Future Capital to raise money for expanding its chain of consumer finance outlets, unlock shareholder value and incentivise its talent through stock options. Kotak Mahindra is said to be the lead-manager for the issue.
When contacted, Future Group chief executive Kishore Biyani said: “We do not comment on speculation.” FCH CEO and managing director Sameer Sain also declined to comment. Pantaloon Retail till recently held a 74% stake in FCH, with the rest being held by co-promoter Sameer Sain and other senior employees such as Atul Kapur and Shishir Baijal. Six months ago, Och-Ziff Capital, a $27-billion hedge fund is also said to have picked up a 10% stake for an undisclosed amount.
The asset management business of Future Capital includes Kshitij (a $85-million domestic real estate fund), Horizon, a $350-million international real estate fund and Indivision, a $425-million private equity fund which invests in the consumer sectors and a $350-million hotel fund. The consumer credit business, Future Money, includes the personal lending business.
Read more in The Economic Times article.
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