Deccan Chronicle Holdings has acquired controlling stake in Future Group’s financial services company Future Capital Holdings for Rs 700 crore.

The shares of Future Capital Holdings rose more than 7% today after media reports stated Deccan Chronicle Holdings was buying stake in the Future Capital.

Meanwhile, the shares of Deccan Chronicle slipped 3.6% in the opening trades before bouncing back more than 2%. The English –language daily newspaper will buy the stake owned by his flagship company, Pantaloon Retail India Ltd in Future Capital Holdings in an unexpected diversification for the Hyderabad-based sports and media company.

The deal worth Rs 700 crore has been concluded and is likely to be announced shortly, the media reports said. 

Retail entrepreneur Kishore Biyani will exit the businesses through two separate transactions worth over Rs 1,000 crore. On the other hand, Mumbai-based Industrial Investment Trust has acquired Pantaloon’s 26% stake in its insurance joint venture Future Generali Life for Rs 250-300 crore.

Both the transactions are all-cash deals. The officials of Deccan Chronicle denied any deal with Pantaloon. “It’s news to me. I am not aware of any such development,” said Deccan Chronicle Holdings Chairman T Venkattram Reddy.

Deccan Chronicle has financed part of the acquisition through sale of its stake in Deccan Chargers.

Meanwhile, V Vaidyanathan will continue to head Future Capital Holdings. Future Capital Holdings has assets worth Rs 3,000 crore comprising wholesale, retail and mortgage loans.

Future Capital is a provider of financial services across consumer and wholesale businesses. The company is establishing financial superstores within the retail stores of Future Group like Big Bazaar, E-zone and Home Town to create India’s first consumer-centric retailer of financial products and services.