Kishore Biyani, managing director, said the initial public offer would raise around Rs 2000 crore (Rs 2 billion), but refused to comment on the nature of the new company.
Pantaloon Retail is the Rs 4,000 crore (Rs 40 billion) group's only listed company. The group operates in six verticals: retailing, capital, brands, space, media and logistics.
According to market sources, the group could be looking at either listing its logistics or capital business.
In the retail business, Pantaloon Retail is complemented by group companies, Indus League Clothing - which owns apparel brands Indigo Nation, Scullers and Urban Yoga - and Galaxy Entertainment, which operates Bowling Co, Sports Bar, F123 and Brew Bar.
Pantaloon Retail, the group flagship, has nine subsidiaries, eight partnerships and 10 retail chains such as Food Bazaar, Big Bazaar and Central.
The group's joint venture partners include French retailer ETAM Group, US stationery retailer Staples and UK's Lee Cooper.
Group company Planet Retail operates franchises for international brands, including Marks & Spencer, Next, Debenhams and Guess. The Indian joint venture partners include Manipal Healthcare, Talwalkar's, Blue Foods and Liberty Shoes.
Future Capital Holdings, the group's financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels.
The group has launched a consumer credit and financial supermarket format, Future Money and plans to offer insurance products through a joint venture with Italian insurance major, Generali.
Future Group is also aiming to roll out a chain of discount stores called KB's Fair Price, where goods would be cheaper by 10 to 15 per cent compared with the prevailing market rates.
"We are planning to set up 1000 stores in three years. These would span across some 3,000 sq ft each. These stores would be located at the top eight cities, initially," Biyani said.
KB's Fair Price is expected to cater to the urban poor. These would be non-AC stores, with operation costs kept at the lowest, Biyani stressed.
The KB's Fair Price would sell FMCG products, essentially Future Group's private labels. The group is also bullish on converting heritage properties into retail stores. "That is the trend overseas. So I thought of revamping some heritage properties in India, to run my retailing business," Biyani said.
Future Group has already acquired the rights for the LIC and Mckinsey buildings in Kolkata, which were heritage properties and are now being converted into retail destinations.
Biyani is targeting a group turnover of Rs 30,000 crore (Rs 300 billion) by 2010, with the biggest contribution coming from its Future Capital venture.