Future Lifestyle Fashion (FLFL), the fashion business of Kishore Biyani-owned Future Group, on Friday said that private equity firm Blackstone has invested Rs 1,750 crore in its holding company, Ryka Commercial Ventures.
"Funds managed by Blackstone have invested Rs 1,750 crore in Ryka Commercial Ventures, the holding company of the lifestyle retailer, through debentures," Future group firm said in a filing to the Bombay Stock Exchange.
With this transaction, Blackstone will be the only financial partner in Ryka, the company said.
Luv Parikh, Managing Director, Blackstone said, "This is our first investment in this sector. We look forward to being a value-added investor as FLFL and the Future Group continues to cater to the fashion needs of aspiring India."
"We have been impressed with the business that Kishore Biyani has built at Future Group and are delighted to support Future Group in this journey," said Kishore Moorjani, Head of Blackstone Tactical Opportunities, Asia.
The company has used fund proceeds to retire all existing financial obligations of Ryka, consolidating FLFL's burdens with one long term investor, it said. "FLFL and the Future group are expected to benefit from Blackstone's portfolio operations team to create value in its business," it added.
Earlier in July this year, Blackstone had acquired a 6 per cent stake in FLFL through a block deal with Ryka for about Rs 545 crore. Biyani and his family hold 53.43 per cent in FLFL via entities such as Ryka Commercial Ventures, Central Departmental Stores and Future Enterprises among others.
Premji Invest, L&T Mutual Fund, LIC, Apollo Global Management and L Catterton are existing stakeholders in the company.
Commenting on the development, Kishore Biyani, Group CEO of Future Group, said, "We are delighted to have Blackstone as a financial partner for FLFL's business. They share our excitement and vision for Future Lifestyle Fashions business. Blackstone will support us in the continued growth of our fashion business, bringing global perspectives that will help us take FLFL to the next level."
Edited by Chitranjan Kumar