Future Lifestyle arm raises Rs 250 crores

Future Lifestyle arm raises Rs 250 crores

NEW DELHI: Future Lifestyle Fashions has raised Rs 250 crore in a subsidiary that houses the Lee Cooper brand of clothing, valuing the brand at Rs. 1000 crores. The funds have been raised from a group of investors including Nomura, Barclays and Adani Capital, said people directly aware of the matter. 

Future Specialties Retail, a newly created subsidiary, has issued compulsorily convertible preference shares (CCPS) to the investors who have the option of converting these instruments into a 26% stake in the company after three years. 

The investment agreement is structured to provide a 20% assured return to the investors over a three year period and allows them to partake in any upside that emerges from the increase in the valuation of the company due to its financial performance when the option to convert the instruments is exercised, according to a person in the know. 

Spokespersons for Adani Capital and Barclays declined comment, while Nomura also did not respond to emailed queries. 

Future Lifestyle has exclusive rights to sell the Lee Cooper brand in a clutch of countries including India, Bangladesh, Maldives, Bhutan and Nepal. 

The company announced in a stock exchange filing on October 1, 2016, that it was transferring the business of Lee Cooper into a wholly owned subsidiary and had plans to raise funds. It also notified in a stock exchange filing that it had signed a term sheet with Barclays Bank PLC, India, Bangladesh, Maldives, Bhutan and Nepal. 

The company announced in a stock exchange filing on October 1, 2016, that it was transferring the business of Lee Cooper into a wholly owned subsidiary and had plans to raise funds. It also notified in a stock exchange filing that it had signed a term sheet with Barclays Bank PLC, India, for the proposed transaction.