Future Lifestyle Fashions Ltd said Singapore-based private equity firm L Catterton Asia is buying a 10% stake in the clothing retailer.
Kishore Biyani-owned Future Lifestyle did not disclose the size of the deal; however, considering the current stock price of Rs420.50 a share, L Catterton Asia is expected to invest around Rs800 crore.
L Catterton Asia, earlier known as L Capital Asia, will acquire the stake through a mix of preferential allotment and secondary purchase of shares, Future Lifestyle told stock exchanges on Monday.
The consumer-focused private equity firm was formed through a partnership between Catterton, LVMH and Groupe Arnault and currently has $15 billion worth of investments under management.
The investment by L Catterton is likely to help Future Lifestyle to gain “global fashion and retail expertise” to further expand its business, the statement said.
A spokesperson for the Reserve Bank of India did not reply to an email seeking comments.
Future Lifestyle is India’s largest integrated fashion company, with more than 30 brands and 400 stores across the country.
Source: Mint