Business Standard

PE exit reason for Future Supply Chain IPO: Biyani

- PRESS TRUST OF INDIA

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.

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