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Premji wraps up $25m stake in clothing company Fabindia

1 Mar 2012

Premji Invest is reported to have bought a seven per cent stake in traditional Indian clothing retailer Fabindia for up to $25m.

The reported deal comes just weeks after L Capital Asia – the Asian private equity arm of iconic luxury goods conglomerate LVMH – bought an eight per cent stage in the business from Wolfensohn Capital Partners.

It is understood both firms outbid at least a dozen fellow private equity competitors, including Carlyle, Bain Capital and KKR, to secure the stake.

The company, which has more than 140 retail stores across India as well as outlets in Dubai, Nepal and Italy, is expected to use the money to expand both domestically and internationally.

Yesterday L Capital Asia managing partner Ravi Thakran told AltAssets that the firm has completed its eighth deal and is due to seal its second exit during the first half of this year.

Thakran said the firm was busy deploying capital and selling assets to return money to investors as it warmed up to raise a new $1bn vehicle, which it will begin marketing once its first fund is 80 per cent invested.

The Asian private equity arm of iconic luxury goods conglomerate LVMH made its India debut last year by grabbing a 25.5 per cent stake in Genesis Luxury Fashion.

Global private equity heavyweight Carlyle also outbid a string of competitors for a stake in the retailer last November, which valued the company at about $286m.

Fabindia specialises in handcrafted jewellery and kurtas as well as furnishing, pottery and organic food.

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