Blackstone and Future Lifestyle Fashions Limited announced that funds managed by Blackstone have invested Rs 1,750 crore (including by way of debentures) in Ryka Commercial Ventures Pvt Ltd, the holding company of FLFL, and FLFL. With this transaction, Blackstone will be the only financial partner in Ryka. As a part of the transaction, Blackstone has also acquired a 6 percent stake in FLFL through a block deal with Ryka.
Proceeds of the investment has been utilized to retire/ pre-retire all existing financial obligations of Ryka, consolidating FLFL’s encumbrances with one long term investor. FLFL and the Future Group are expected to benefit from Blackstone’s portfolio operations team to create value in its business.
FLFL is one of India’s largest integrated branded fashion companies and counts L Catterton, Premji Invest and Apollo Global Management as existing large stakeholders. With this investment by Blackstone, another globally marquee institutional name has been added to this list.
Commenting on the transaction, Kishore Moorjani, Head of Blackstone Tactical Opportunities, Asia said: “We have been impressed with the business that Kishore Biyani has built at Future Group and are delighted to support Future Group in this journey.”
Luv Parikh, Managing Director, Blackstone added: “This is our first investment in this sector. We look forward to being a value-added investor as FLFL and the Future Group continue to cater to the fashion needs of aspiring India.”
Kishore Biyani, Group CEO of Future Group, noted, “We are delighted to have Blackstone as a financial partner for FLFL’s business. They share our excitement and vision for Future Lifestyle Fashions business. Blackstone will support us in the continued growth of our fashion business, bringing global perspectives that will help us take FLFL to the next level.”