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PremjiInvest, the investment arm of Wipro chairman Azim Premji, on Thursday picked up a 6 percent stake in Future Retail from Bharti Group for about Rs 600 crore, according to information given to the exchanges.
Kishore Biyani, founder and Group CEO, Future Group, told CNBC TV18 that Future Retail will receive Rs 575 crore via clawback provision and it will be utilized to reduce the debt in the company.
PremjiInvest is already an investor in one of the group entities, Future Lifestyle Fashions.
Bharti still holds about 3 percent stake in Future Retail via a group entity called Cedar Support Services.
Three years ago, the Kishore Biyani-owned Future Group agreed to merge its retail business with rival Bharti Retail in an all-stock deal that gave Cedar Services 9.23 percent in both Future Retail and its backend company, Future Enterprises.
Kishore Biyani's flagship company, which runs Big Bazaar, posted an 8 percent increase in sales at Rs 18,489 crore in FY18, with a profit before exceptional items at Rs 615 crore.
Over the past six years, Biyani has acquired almost half a dozen supermarket store chains, including Bharti Retail, Nilgiri's, Hypercity and Heritage retail division, putting together a total retail space of 13.6 million sq ft, with presence in 255 cities through 930 stores. Only Reliance Retail comes close to the Future Group’s national footprint.
Indian retail sector has witnessed slew of global players entering the sector, like Amazon and Walmart.
Future Retail, which operates Big Bazaar retail chain, is the leader in India’s retail market. Biyani had told The Economic Times last month that he was looking to sell at least 10 percent stake in the company to a global retailer.
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