NEW DELHI -- Global private equity company Blackstone has invested 17.5 billion rupees ($244 million) by way of debentures in Ryka Commercial Ventures, the holding company of Future Lifestyle Fashions, the companies said in a joint statement.
As a part of the transaction, Blackstone acquired a 6% stake in FLF through a block deal with Ryka, the statement said. With this transaction, Blackstone will be the only financial partner in Ryka.
"This is our first investment in this sector," said Kishore Moorjani, head of Blackstone Tactical Opportunities, Asia. We look forward to being a value-added investor as FLF and the Future Group continue to cater to the fashion needs of aspiring India."
The investment has have been used to retire or pre-retire all existing financial obligations of Ryka, consolidating FLF's liabilities with one long-term investor.
FLF and the Future Group are expected to benefit from Blackstone's portfolio operations team to create value in its business, it added.
Future Group CEO Kishore Biyani said, "Blackstone will support us in the continued growth of our fashion business, bringing global perspectives that will help us take FLF to the next level."
FLF is one of India's largest integrated and branded fashion companies. It also counts L Catterton, PremjiInvest and Apollo Global Management among its large stakeholders. In July, the group raised 3 billion rupees from private equity fund AION Capital Partners.
The group has a diversified portfolio spanning 30 fashion brands -- both owned and licensed -- including Lee Cooper, Indigo Nation, Jealous 21, Bare and All.
FLF generated revenue of 57.28 billion rupees with an EBITDA of 5.64 billion rupees and a net profit of 1.89 billion rupees for the fiscal year ended March.
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