Azim Premji, through his Private Equity Fund – PremjiInvest, bought a 6 per cent stake in Future Retail on 7 June 2018. The purchase happened through a subsidiary of Bharti Ventures Ltd. – Cedar Support Services Ltd.
As reported by livemint, the complete deal was around Rs.1,700 crore and the Future Group will receive a Rs.600 crore inflow. Bharti Ventures and Future Retail have a claw-back agreement by which the latter can have a certain percentage of the value of the deal.
Premjiinvest, headed by Azim Premji has investments in numerous listed and unlisted companies. The company already had a stake in an entity of the Future Group, Future Lifestyle Fashion. In an interview with CNBC TV18, Kishore Biyani, the founder and CEO of the Future Group, said that PremjiInvest is one of the largest investors in the Indian consumer space.
Amazon, one of the most popular e-commerce websites in the world, initially had its eyes on Future Retail. PremjiInvest, however, made the deal.
Future Retail is a part of the Future Group, and the Future Retail chain includes Big Bazaar, Easy day, fbb, Foodhall, e-zone, Hyper City, and Heritage Fresh. The stores are scattered across 250 cities in the country.
The Premji family is also in the news because Azim Premji’s youngest son, Tariq Premji is appointed to the 6-member board of Wipro industries.