Kishore Biyani-led Pantaloon Retail on Friday announced the sale of 22.5% stake in Future Generali India Life Insurance (FGILI) to non-banking financial company Industrial Investment Trust Ltd for an estimated Rs. 300 crore. Pantaloon holds 50% stake in FGILI.
Post the deal, Future Group consisting of Pantaloon Retail and Sprint Advisory Services Pvt Ltd will continue to hold 52% stake in FGILI. Future Group currently owns 74% in FGILI.
The move is seen as an attempt to reduce debt. The company’s total debt stood at Rs. 5,430 crore as of December 31, 2012. According to sources, Biyani may look to shed further weight to manage the debt
The company has been sealing deals to trim debt. It has already sold its stake in Future Capital Holding to Warburg Pincus and its retail business to the Aditya Birla Group wherein the company’s debt will be slimmed by Rs. 1,600 crore once the deal is completed.