Private equity fund AION Capital Partners is investing Rs 300 crore ($43.6 million) in Kishore Biyani-led Future Lifestyle Fashions Ltd.
The Future Group company said in a stock-exchange filing it will issue about 6.5 million preferential shares to AION Capital at Rs 463 apiece.
Future Lifestyle will seek shareholder approval for this deal on August 26.
AION Capital is joint venture of US-based Apollo Global Management and Indian private equity firm ICICI Venture. It is investing out of its first fund and is in the process of raising its second fund.
The investment in Future Lifestyle comes months after AION reportedly put money in the Biyani family’s holding firm, Central Departmental Stores Pvt. Ltd. In December 2018, The Economic Times reported the holding company raised Rs 1,400 crore from AION via bonds to reduce the group’s debt exposure.
Separately, in July 2018, Future Lifestyle had raised capital from consumer-focussed private equity firm L Catterton Asia. L Catterton had also acquired shares from PremjiInvest, the family office of Wipro’s Azim Premji. Another investor in Future Lifestyle is media house Bennett, Coleman & Co. Ltd.
Founded in 2012, Future Lifestyle markets about 30 fashion brands through company-operated chains such as Central and Brand Factory, besides exclusive brand outlets, department stores and multi-brand outlets. It operates more than 400 stores spread over 6 million sq ft of space.
In another recent deal involving the retail group, Future Consumer Enterprises raised capital from International Finance Corporation and Verlinvest in May.
AION Capital, which had raised $825 million in 2014, has struck several deals in the recent past. In January, it said it had acquired IT services firm Interglobe Technologies.
Last year, AION Capital tied up with JSW Steel Ltd to acquire bankrupt steelmaker Monnet Ispat & Energy Ltd.
In March 2017, it had acquired a majority stake in Planetcast Media Services Ltd. In 2015, it had spent Rs 600 crore to buy a stake in Varun Beverages Ltd, one of the largest bottlers of PepsiCo in India. AION exited Varun Beverages this year, making twice the capital on its initial investment.
