Pantaloon to spin off financial arm, raise capital via IPO

20 August 2007

Mumbai: Pantaloon Retail India Ltd, the country''s top listed retailer, is spinning off its asset management and consumer credit arm Future Capital Holdings through an initial public offer of shares, as the group expands its flagship retail business and new ventures.

Future Capital, the financial arm of the Kishore Biyani-owned Pantaloon Retail, will be the group''s only other listed unit.

Pantaloon Retail controls nearly 74 per cent stake in Future Capital while US hedge fund Och-Ziff Capital holds nearly 10 per cent stake. The remaining stake is being held by co-promoter Sameer Jain and some senior employees such as Atul Kapur and Shishir Baijal.

Future Capital''s asset management business has four funds under management - Kshitij ($850million domestic real estate fund); Horizon ($350 million international real estate fund); IndiVision ($400 million non-leveraged private equity fund); and a new Hospitality fund. ($350million).

The consumer credit business includes a personal lending business.

Market sources said the public offer would be a mix of new and existing shares, which would help shareholders monetise a part of their holdings.