Post this realignment, the Future Group will have three distinct listed companies that emerge as market leaders in their businesses with independent growth paths.
The key objectives of the realignment of Future Group is to create a simplified business structure with independent companies in hypermarket and supermarket chains (PRIL), fashion (Future Fashion) and food and FMCG business (FVIL).
Creating financing flexibility for each of the companies by enhancing their ability to attract partners and investors and raise and deploy capital according to their business requirements.
PRIL and FVIL will demerge their fashion business into Future Fashion (which will be listed), subject to necessary regulatory approvals.
The company's exchange ratio recommended by the valuers and approved by both the boards is 1 equity shares of Future Fashion, for every 3 equity/DVR shares held in PRIL, and 1 equity shares of Future Fashion, for every 31 equity shares held in FVIL.
Post the realignment, shareholders of PRIL will hold 49.8% in Future Fashion, shareholders of
FVIL will hold 30.5% and 19.7% will be held by PRIL as a corporate entity.
FVIL will acquire businesses of some of its subsidiaries by way of merger and demerger and will emerge as an operating company. It will cease to be an NBFC. As a consequence of the demerger of the fashion business, it will also reorganise its share capital to change the face value of its shares from Rs 10 to Rs 6.
The shareholding pattern of PRIL and FVIL will remain unchanged.