India-based Future Lifestyle Fashions has separated its denim jeans brand Lee Cooper into a new subsidiary Future Specialty Retail.
The firm has also announced plans to issue Rs2.5bn ($37m) of convertible preferential shares to the new entity.
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According to Bombay Stock Exchange filing, the new unit was incorporated on 27 September with a subscription amount of Rs500,000 ($7,516.26), reported Fibre2fashion.com.
This fund injection will lead to the promoters diluting 26% of Lee Cooper's brand value, which is currently estimated at Rs10bn ($150m), sources familiar with the matter told PTI.
In the BSE filing, Future Lifestyle Fashions also stated that its unit Future Trendz will continue with the retail business. Future Lifestyle Fashions operates retail chains including Brand Factory and Central, as well as apparel brands such as Indigo Nation, Lee Cooper, Sculler, and Clarks.
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