Indian company Future Lifestyle Fashions (FLFL) is set to transfer its stake in its investee brands to a subsidiary called FLFL Lifestyle Brands (FLBL).

The company said it plans to raise Rs4.5bn ($69.2m) by monetising holdings in this brand portfolio.

Following the transaction, FLFL is set to own a 49% equity stake in FLBL, while investee companies will continue to be run independently by their respective entrepreneurs and professionals.

The transaction is expected to reduce debt at the company, and a minor portion of the raised funds will be used to grow the investee brands.

The company is also transferring its Lee Cooper business to a subsidiary called Future Specialty Retail.

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By GlobalData
"Investee companies will continue to be run independently by their respective entrepreneurs and professionals."

In a separate filing to BSE, the company said that Future Specialty Retail issued and allotted 400 compulsory convertible preference shares and 150 optionally convertible debentures in order to transfer Lee Cooper.

FLFL has retail formats such as Central and Brand Factory, along with a portfolio of brands such as Lee Cooper, John Miller, Indigo Nation, Scullers and Jealous 21.

The company operates more than 5.5 million square feet of retail space in the country.

In 2013, FLFL sold its stake in AND and BIBA brands in a Rs3.8bn ($58.4m) deal.