Kishore Biyani, CEO, Future Group, has finally decided to demerge his home business under Future Retail and list it as a separate company under Praxis Home Retail (PHRPL).

The home retail business comprises about 40 HomeTown stores along with the acquired online business under FabFurnish.

The shares of Future Retail jumped by 4.46 per cent on Thursday and closed at ₹305.90. Apart from HomeTown, Future Retail includes formats like Big Bazaar, fbb, eZone, Food Hall, Food Bazaar and Bharti Retail’s Easy Day outlets with a turnover of ₹12,591 crore as of December 31, 2016.

During the time Fab Furnish got acquired last year, Biyani had indicated merging the online business of FabFurnish with HomeTown and hiving it off as a separate company.

“It has been ten years since we started HomeTown and now we are seeking shareholder value in this business after merging it with FabFurnish with the possibility of hiving it off as a separate company from Future Retail. We are now targeting ₹1,000 crore turnover from the home business,’’ Kishore Biyani had said.

With both HomeTown and FabFurnish still struggling to make money, it may be a matter of time before Biyani finds a buyer for his home business to focus on his core businesses of fashion and food which exist under listed companies of Future Lifestyle and Future Consumer, respectively.

“We will see what to do with the furniture business,’’ said Biyani, without disclosing any future plans for the business.

But industry sources indicated that Biyani was on his way to sell his loss-making speciality businesses and focus on food and fashion exclusively.

Future Retail (FRL) informed the BSE that it will further seek the listing of PHRPL.

"The equity shares of PHRPL to be issued to the shareholders of FRL pursuant to the scheme shall be listed on the stock exchanges viz BSE and NSE (subject to listing permission being granted by the stock exchanges)," the company said in a filing to the BSE.

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