Future Lifestyle Fashions (FLF) is planning to raise money by selling its investments in fashion brands and utilise the funds for deleveraging its balance sheet as well as other corporate purposes.
Explaining the rationale behind the move, the company said it owned many brands and also has exclusive manufacturing and marketing licenses for India for certain global brands and it has also invested in several fast growing fashion brands which are owned by various investee companies.
Some of the brands are at nascent stage and have considerable growth potential in future. In order to nurture each of the investments for its possible potential growth, it is necessary that proper support and guidance is given to each of these investee companies as per their specific needs and requirements, it added.
“The focus on such investee companies could be substantially enhanced if the investments held in these companies are transferred to a wholly owned special purpose vehicles (WOSPV),” FLF said.
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