INSUBCONTINENT EXCLUSIVE:
By Karunya RaoThe Kishore Biyani-led Future Retail is looking to raise around Rs 2,800-3,000 crore by divesting stake of up to 10 per cent
While Paytm and Google are in race to build their retail exposure, Amazon and Walmart have also set their sights on the Future Retail
pie.
The deal, which may be finalised in the next 8-12 weeks, could be through issue of fresh shares or promoters cutting down their stake
The board is keen on unlocking value, sources said.
The promoters hold 46.5 per cent in the company
The management, however, has denied any such move.
Future Retail has a market cap of nearly Rs 24,000 crore
The stock traded at Rs 517, up 0.98 per cent around midday on Friday
Plans are also afoot to ready the company for Retail 3.0 -- a blend of technology and brick and mortar model
Existing guidelines do not allow 100 per cent overseas investment in multi-brand retail
Indian companies can dilute up to 49 per cent stake to multiple foreign portfolio investors.
Amazon is a case in point, which invested in
Shoppers Stop through an investment arm.
Future Retail, the owner of Big Bazaar, EasyDay, Nilgiri's and HyperCity, posted a profit of Rs
11.3 crore for 2017-18, with sales at Rs 18,478 crore
It expects its online sales to hit Rs 1,000 crore next year
The company has its footprint across more than 300 cities through 1,035 stores
Retail is turning red hot in the Indian market
That's evident from a visible rise in investor interest and a steady wave of MA activity seen over the past few quarters.
With RIL stepping
up its retail play, you can expect more sparks to fly.
