Mumbai: Future Group is in talks with a clutch of potential buyers including JPMorgan and Kohlberg Kravis Roberts and Company to sell its financial services arm, Future Capital Holdings, three sources with direct knowledge of the matter told Reuters.
The group, which has hired Morgan Stanley to run the sale process, is also in talks with the business conglomerate Piramal group, said the sources, who declined to be named as they were not authorized to speak to the media.
Shares in Future Capital, which have lost 18.2% in value over the last one month, rose more than 7% in a Mumbai market that was up 0.85% at 11:26 am.
Future Capital, which has a market value of $214 million, is a non-bank finance company (NBFC) that makes consumer and mortgage loans.
Future Group and the Piramal group declined to comment, while JPMorgan did not return an e-mail seeking comment. An official with United States (US) based private equity giant KKR was not immediately available for a comment.
The controlling shareholders of Future Capital run India’s largest retail chain by market value, Pantaloon Retail, and consider the finance unit a non-core business, according to a source. The Mumbai-based Future Group owns 54% of Future Capital, which has more than Rs 3,000 crore ($653 million) of assets.
The Piramal group’s Piramal Healthcare unit said, in May, it was entering the financial services business. Piramal Healthcare is armed with a war chest after selling its domestic formulations business for $3.7 billion.