Global duty-free retailer Flemingo International BVI Ltd will buy back the entire stake held by private equity (PE) investors post the listing of its Indian entity on the stock exchanges BSE and NSE in the coming months, reported DNA.
Flemingo Travel Retail Ltd (FTRL), wholly owned by Flemingo BVI, had filed its draft proposal with capital markets regulator in February for the initial public offering (IPO) that is expected to hit the market in mid-July this year.
As per the DRHP, the company will issue fresh shares worth Rs 2,423 crore besides an offer for sale of nearly 1.13 million shares by one of its subsidiary firm Flemingo Duty Free Shop Mumbai Pvt. Ltd.
The PE investors, including Samara Capital from India, Samena Capital from Middle-East, China Development Investment Bank (CDIB) from Hong Kong, Albright Capital from Washington and Cartesian Capital Group from New York, had collectively invested about $110 million in the Indian entity between 2008 and 2014. They together currently own 33% stake in Flemingo Travel.
Flemingo BVI currently holds 58 per cent in FTRL.
While a majority of the funds raised through the public offer will go into buying PE investors’ stake in the company, incurring tax expenses and paying off debt on the parent company’s books, about 10 per cent equating to Rs 300 crore will be used by Flemingo Travel for business operations and expansion, the report said.
Post the IPO, the company will comply with 25 per cent minimum public float norms set by SEBI for listed Indian firms.
Flemingo International BVI Ltd is based in Dubai and operates duty free stores at airports, seaports, borders, and downtown. It has presence across 33 countries with operations in Asia, Africa, Europe and Latin America.
The company has three operating entities – FTRL, Flemingo Duty Free India (FDFI) and Flemingo UK. While FTRL operates Mumbai and Delhi businesses, FDFI looks after Indian airports and the rest of the world. Flemingo UK operates the company’s cruiseline retailing business.
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