Mumbai: Kishore Biyani’s Future Lifestyle Fashions Ltd on Friday said it has hived off its brand Lee Cooper into a new step-down subsidiary, Future Specialty Retail.
The company will also issue Rs250 crore of compulsorily convertible preferential shares to the new fully-owned arm.
This fund infusion will result in the promoters diluting 26% of the brand value of Lee Cooper, which is pegged at Rs1,000 crore, people familiar with the matter told PTI.
The company in a BSE filing also said its another wholly-owned subsidiary, Future Trendz, will carry on fashion retail business and related activities.
Future Specialty Retail was incorporated on 27 September with a subscription of Rs5 lakh, according to the exchange filing.
Future Lifestyle Fashions runs Central, Brand Factory and other brands including Indigo Nation, Lee Cooper, Sculler, and Clarks. It divested its stake in Biba, women clothing line AND, and Celio over the past few years, but still owns significant shares in brands such as Clarks, Tresmode and Giovani, among others.
Last year, Future Group chief executive Kishore Biyani had said the company would target a revenue of Rs75,000 crore to Rs1 trillion, from the current Rs20,000 crore.
It is focusing on food, fashion, general merchandise and home categories. Shares of Future Lifestyle Fashions on Friday closed 0.80% up on the BSE at Rs131.60. Duestche Bank India was the sole adviser to the restructuring of the company.