Future Lifestyle to list next week; BIBA sale complete

Kishore Biyani's fashion retail company, Future Lifestyle Fashion (FLF), will be publicly listed in a week's time. Company sources told CNBC-TV18’s Farah Bookwala that FLF will be listing on the BSE and NSE on the 1st or 3rd of October.

FLF, which was created in November 2012 from the demerger of the lifestyle businesses of Future Retail and Future Ventures, will base its listing price on market discovery. While Future Retail has valued Future Lifestyle at Rs 195 per share, the company is expecting the listing price to be broadly between Rs 170 and 200 per share, given the current economic sentiment. Future Retail owns 20 percent of FLF shareholding and post the listing, foreign institutional investors (FIIs) will own at least 18%, say sources. Also read: Big Bazaar Direct: Will it be a revenue churner for Biyani? Notably, Singapore-based Arisaig Partners, which has stakes both in Future Retail and in Future Ventures, will own 7-8 percent post the listing of the company. Future Lifestyle is expected to post a turnover of Rs 3,200 crore by March 2014 and an EBIDTA of 12 percent, taking the company significantly closer to its target of achieving a turnover of Rs 5,000 crore by FY15-end. Meanwhile, company sources also told CNBC-TV18, that Future Lifestyle has offloaded their stake in ethnic brand BIBA. Sources did not disclose which PE player has picked up Future Lifestyle's 25.8 percent stake in the company. Sources added that Future Lifestyle will also complete the sale of their 23 percent stake in Anita Dongre's AND Designs in 2-3 weeks. Both the deals will fetch Future Lifestyle Rs 450 crore, which will help it reduce its debt pile of Rs 1,400 crore.