JPMorgan, KKR, Piramal eye Kishore Biyani’s Future Capital Holdings: report
31 Aug 2011
The Rs10,000-crore Kishore Biyani-led Future Group is in talks with a several potential buyers including private equity firms JPMorgan and Kohlberg Kravis Roberts as well as Piramal Group for the sale of its financial services arm, Future Capital Holdings, Reuters yesterday reported, citing three sources with direct knowledge of the matter.
The Mumbai-based group has hired Morgan Stanley to run the sale process of Future Capital, which has a market value of $214 million, the news agency said.
Future Capital Holdings is registered as a non-banking financial company. In agreement with Kishore Biyani-promoted Pantaloon Retail India Ltd. (PRIL), the company provides financial products and services at malls, stores and retail outlets in India that are owned, controlled or managed by PRIL and its subsidiaries.
It also gives home and auto loans, offer s wealth management services and has a tie-up with credit information agencies including Cibil and TransUnion.
It also has an agreement with ICICI Bank for marketing and distributing credit cards offering loyalty points to customers and is also looking to diversify into insurance products and services.
Future Capital, whose loans portfolio saw a 100-per cent growth last year to more than Rs3,000 crore, is 54-per cent owned by Future Group.
For the nine months ended December, its consolidated revenues added up to Rs226.6 crore, on which it earned a net profit of Rs31.47 crore. In fiscal 2010-11, the company reported consolidated revenues of Rs250 crore and net profit of Rs59.2 crore.
After selling its healthcare unit's domestic formulations business to Abott Laboratories for Rs17,020 crore, Piramal Group had said that it would enter the financial services business.