Future Lifestyle Fashion Ltd, part of the Kishore Biyani-led Future Group, said on Tuesday that it has divested its minority stakes in ethnic wear firm Biba Apparels and designer Anita Dongre-owned AND Designs for Rs 450 crore.
"We are exiting mature investments. Both the investments were made more than five years ago. We exit investments when they become large. Total receipts from divestment of Biba and AND was Rs 450 crore," Future Group founder Kishore Biyani told PTI.
While Mr Biyani refused to give the break-up of valuations of investments in Biba Apparels and AND Designs, the company said in an investors' update that it made a profit of Rs 190 crore from sale of its stake in Biba.
Fashion Lifestyle Fashion (FLF) had a 22.9 per cent stake in AND Designs and 25.8 per cent stake in BIBA Apparels. Future Group had first acquired a 6.5 per cent stake in Biba in 2007, which was gradually increased to 25.8 per cent in 2011.
While FLF has exited from two investments, it has also picked up minority stakes in three companies - footwear firms Tresmode and Famozi shoes and Mineral, a designer label from Priyadarshini Rao.
"These investments will mature in 4-5 years," Mr Biyani added.
During the second quarter of fiscal year 2013-14 (FY14), Future Lifestyle Fashion reported a net profit of Rs 108.90 crore, while net sales were at Rs 690.10 crore.
The company did not have operations in the corresponding quarter of the previous fiscal year (FY13) for comparison.
Future Retail demerged its fashion business in November, 2012 and formed a new company called Future Lifestyle Fashions.
FLF has a portfolio of over two dozen fashion and lifestyle brands.