Future Retail to acquire HyperCity for Rs.655 crore

Future Retail, an arm of Kishore Biyani-led Future Group said it will acquire Shoppers Stop's HyperCity chain of food and grocery supermarkets for Rs.655 crore. Enterprise value of HyperCity is Rs.911crore. It has debt of around Rs.256 crore. Future Retail bought HyperCity at Rs.655 crore for part cash and part share consideration.

Bombay Stock Exchange-listed Shoppers Stop, which will receive the cash and shares of Future Retail in proportionate manner, owns 51% in HyperCity , while parent K Raheja Corp holds the rest. Future Retail will issue shares worth Rs.500 crore, while the rest of the Rs.155 crore will be paid in cash.

Biyani's Future Group, which owns Big Bazaar, arguably the largest retail chain the country , has been on a buying spree. It acquired Easyday chain from Bharti Enterprises, Delhi-based Big Apple and southern chains of Nigiris and Heritage Foods.

The latest acquisition will take the Future Retail's store count past 900. Founded in 2004, HyperCity clocked revenue of around Rs.1162 crore in FY17. It is a loss-making entity and operates around 19 stores. The acquisition is expected to add muscle to Biyani's operations in western India.

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