Future Capital buys stake in Biba Apparels

FUTURE GROUP CO PAYS Rs 20 CR FOR 7-15%

FUTURE Capital Holdings, the financial arm of the Future Group, has picked up a minority stake in Mumbaibased Biba Apparels Pvt Ltd for Rs 20 crore. Biba Apparels retails ethnic womenswear at multi-brand outlets like Shoppers’ Stop and Lifestyle and at 42 Biba exclusive outlets in Mumbai, Delhi, Hyderabad and Bangalore. Confirming the news, Future Capital CEO Sameer Sain said: “We have picked up a minority stake in Biba.” Mr Sain, however, refused to divulge details. According to sources, the stake picked up by Future Capital is in the range of 7-15%. The investment is learnt to be in the form of convertible debentures. Biba Apparels director Sanjay Bindra said: “We have been looking at various funding options — debt, equity and IPO — for our expansion plans. Apart from increasing the retail presence of our exclusive stores across the country from the current 65,000 sqft to 220,000 sqft by 2010-11, we plan to enter the overseas market in 2007.” Biba has tied up with the Dubai-based retailer Lulu for its overseas foray. The apparel retailer plans to open 20 Biba outlets in Dubai in the next three months, for which it is in the process of identifying locations and getting its label registered. It is also learnt to be in talks with Reliance Retail for supplying a value apparel brand, priced lower than Biba, which is priced in the range Rs 1,000-5,000. Biba’s projected revenues for the current fiscal are about Rs 60 crore. It plans to expand in the National Capital Region (NCR), Chandigarh, Ahmedabad, Surat and Kolkata. Future Capital Holdings manages the private equity fund, Indivision Capital, and real estate funds Kshitij and Horizon. Apart from the investment in Biba Apparels, Future Capital also has some small real estate investments. Indivision, the PE fund, had recently invested Rs 50 crore in health and wellness chain VLCC and earlier picked up a 26% stake in construction firm BE Billimoria.

Courtesy: EconomicTimes
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