The home grown retail major Future Enterprises (FEL) will be selling 16 per cent stake in Future Lifestyle for Rs.380 crore. FEL owns the physical assets or the store formats and infrastructure assets in the stores of Future Retail and Bharti retail.
Future Enterprises was carved out of restructuring of Kishor Biyani led Future group. The erstwhile Future Retail Limited (E-FRL), the flagship company of the Future Group was split into two separate entities including Future Retail and FEL. As per the arrangement, Future Retail is involved in carrying out retail trade whereas all infrastructure assets are owned by FEL.
Valued at around Rs.800 crore at the current market price, FEL generates over Rs.1,000 crore ‘Earnings Before Interest Tax Depreciation and Amortisation (EBITDA)’ from its real-estate and rental logistic business.
FEL has over Rs.4,500 crore worth of investments and a debt of equal amount. Market analysts said the company plans to monetize all its investments over the years.
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