Tag: Future Retail

Amazon emerges as front-runner to buy stake in Kishore Biyani’s Future Retail, deal to be signed in two weeks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

American ecommerce giant Amazon has emerged as the front-runner to buy at least 7-8 percent stake in Kishore Biyani-led Future Retail, sources told CNBC-TV18.

Tech giant Google, Alibaba backed Paytm had also expressed interest in buying stake in the company.

According to the sources, the deal is in its final stages and is likely to be signed over the next two weeks.

However, discussions around valuation are still to be finalised, which will take a final shape closer to the deal signing, said sources.

The industry estimates that the deal could be valued at about Rs 2,500 crore. The flush of funds will give Future Retail ammunition to take on rivals in both, physical and online world. The deal is likely to be done through Amazon’s investment arm and the final agreement could also involve some exclusivity clauses. Post the deal, Amazon is likely to set up a microsite for Future Retail brands.

The portfolio of private labels is likely to be on offer via Amazon. Meanwhile,  Amazon experience zones could be set up at Future Retail outlets.

Future Group had earlier said that it was not averse to a partnership with global retail giants after speculations emerged of the company exploring a partnership with Amazon.

In a bid to strengthen its presence in the physical space and also to take on Walmart, Amazon has been on an acquisition spree in India. In 2017, Amazon bought 5 percent stake in Shoppers Stop for 180 crore. Recently,  Amazon along with private equity firm Samara Capital, bought Aditya Birla Group’s retail chain More.

The two companies, however, did not respond to CNBC-TV18’s query.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti’s Cedar set to exit Future Retail in Rs 900 crore deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bharti Group entity Cedar Support Services is in talks with foreign and domestic private equity to sell its complete stake in Kishore Biyani-led Future Retail for Rs 850 to 900 crore, multiple sources told CNBC-TV18.

Cedar currently holds about 3.19 percent stake in Future Retail after it sold a 6 percent stake in the company to PremjiInvest, the family investment arm of Wipro Chairman Azim Premji, for about Rs 1,700 crore in June.

Future Group will get about Rs 400 to Rs 450 crore from Bharti via a claw-back provision and the money will be used to reduce the company’s debt or aid acquisitions, sources said.

The sale is likely to happen over the next 4-8 weeks.

Global players like Amazon, Paytm and Google have been looking to buy about 10 percent in Future Retail and sources said, the Bharti transaction will happen only after a larger stake sale by Future Retail to a foreign player.

The deal comes at a time when Biyani is trying to shore up funds as the domestic e-commerce battle heats up.

The Indian retail landscape has changed drastically over the last years with the entry of global players such as Amazon and Walmart.

US retail behemoth Walmart has invested $16 billion in homegrown e-commerce startup Flipkart, valuing it at $21 billion.

And the speculation is rife that billionaire Jeff Bezos-led Amazon will also ramp up its India investment to $7 billion from earlier $5 billion.

Future Retail, the operator of Big Bazaar hyper and supermarket chain, is India’s retail pioneer. Biyani told the Economic Times in May that he was looking to sell at least 10 percent stake in the company to a global retailer.

Shares in Future Retail were up 1.3 percent to Rs 567 at 11 am on the Bombay Stock Exchange.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Google likely to team up with Paytm Mall for Future Retail stake, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Internet search giant Google is looking to team up with Alibaba-backed Paytm Mall to form a consortium and invest Rs 3,500-4,000 crore for a 7-10 percent stake in Future Retail, reported The Economic Times.

This consortium will be pitted against Amazon, which submitted a term sheet to pick up a similar stake in Kishore Biyani-led Future Retail recently, the report said citing several people with knowledge of the matter.

Biyani has been looking at raising funds through a strategic partnership to streamline operations and increase profitability.

In June, telecoms firm Bharti Airtel sold a 6 percent stake in Future Retail to PremjiInvest, the family investment arm of Wipro Chairman Azim Premji, for about Rs 1,700 crore. Future Retail got about Rs 575 crore from Bharti via a claw-back provision.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Azim Premji picks up 6% stake in Kishore Biyani-led Future Retail

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Telecoms firm Bharti Airtel on Thursday sold a 6% stake in Future Retail to PremjiInvest, the family investment arm of Wipro Chairman Azim Premji, for about Rs 1,700 crore.

PremjiInvest is already an investor in one of the group entities, Future Lifestyle Fashions.

Future Retail will get Rs 575 crore from Bharti via a claw-back provision and the money will be used to reduce the company’s debt, said Kishore Biyani, the founder and chief executive officer of Future Group.

Bharti still holds about 3% stake in Future Retail via a group entity called Cedar Support Services.

According to Biyani, there is no sense of urgency from Bharti to sell the remaining stake.

“Cedar is a Mittal family owned entity which held around 9.3 percent in Future Retail. They have sold 6 percent of stake to PremjiInvest and PremjiInvest is one of the larger investor in consumer space in India. They are also investors with us in Future Lifestyle Fashion,” he said.

The deal comes at a time when Biyani is trying to shore up funds as the domestic e-commerce battle heats up.

The Indian retail landscape has changed drastically over the last years with the entry of global players such as Amazon and Walmart.

US retail behemoth Walmart has invested $16 billion in homegrown e-commerce startup Flipkart, valuing it at $21 billion.

And the speculation is rife that billionaire Jeff Bezos-led Amazon will also ramp up its India investment to $7 billion from earlier $5 billion.

Future Retail, the operator of Big Bazaar hyper and supermarket chain, is India’s retail pioneer. Biyani told the Economic Times last month that he was looking to sell at least 10% stake in the company to a global retailer.

Shares in Future Retail recovered most of their losses and were down 0.4% to Rs 565 at 11:55 IST on the Bombay Stock Exchange. The stock fell as much as 2.8% earlier in the session.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow