Abhishek Securities

Kishore Biyani  and his family members are barred from re-entering the retail space for the next 15 years under a non-compete clause as part of  Reliance Retail ’s buyout of  Future Group ’s assets, said two people with knowledge of the matter.   “As per the deal contours, neither Biyani nor his immediate family members can operate in any retail segment,” said one of the persons. “There is, however, an exception, of home retailing, where Reliance has no presence so far. The deal is applicable for all existing retail businesses both online and offline.”   Biyani owns Praxis Retail, a separate entity that runs about 48 HomeTown stores with a revenue of Rs 702 crore in the last fiscal. It isn’t part of the deal with Reliance.  Reliance Retail and Future Group  did not respond to queries.   Most non-compete agreements run for three-five years but financial compulsions may have led to a longer period, experts said. “It is also fairly common...

RIL is in talks with lenders to Kishore Biyani’s Future Group for a haircut on loans and easier terms of repayment, said three people aware of the development. RIL is said to be looking to buy the retail venture. The negotiations involve a haircut of nearly 30% on outstanding loans of more than Rs 6,000 crore and refinancing part of the borrowings for a further period of 5-7 years, said one of the persons. The dues include term and working capital loans. The financial daily quoted a banker aware of the matter as saying, “It’s not finalised yet but talks are on.” Several news reports mentioned that RIL investors are hopeful that the company would announce the transaction at the 43rd AGM to be held via video conferencing on Wednesday (July 15). The daily cited another bank official as mentioning that the company is unlikely to be in a position to clear dues, even with massive restructuring. “A strong promoter with deep pockets would help the business flourish. It’s a good franchise, so l...