PE exit reason for Future Supply Chain IPO: Biyani
The upcoming IPO of Future SupplyChainSolutions, which is expected the garner over ~700 crore, is primarily to give an exit to private equity firm GriffinPartners, FutureGroup Chairman Kishore Biyani said on Sunday.
Future Supply Chain Solutions Ltd (FSCSL), a subsidiary of Future Enterprises, has filed a draft red herring prospectus with Sebi for the public issue of up to about 9.78 million equity shares representing 24.43 per cent of the existing paid-up equity share capital of FSCSL.
While private equity firm SSG Capital’s entity Griffin Partners will sell about 7.82 million equity shares in FSCSL, representing up to 20 per cent of the paid-up equity share capital, the promoter company Future Enterprises will offload 1.95 million shares, representing around 5 per cent stake.
According to Biyani, FSCSL, the logistics arm of the group, is well capitalised and payment of debt or requirement of immediate funds is not the reason for the IPO.
"We have to give an exit to the private equity. The 5 per cent we are selling will go to Future Enterprises. This (FSCSL) is a good capitalised company and there is a very marginal debt of about ~32 crore long term debt," Biyani told PTI.
FSCSL Managing Director Mayur Toshniwal said last year, the company had ~55-60 crore EBIDTA and ~60 crore of cash in the balance sheet.
Griffin Partners had recently also sold about 5 per cent stake in FSCSL to two entities of financial services firm Edelweiss.
FSCSL is one of the largest third-party logistics service operators offering automated and ITenabled warehousing, distribution and other logistics solutions.