Mumbai-based Reid & Taylor, the Rs 600-crore luxury textiles and ready-to-wear garments brand from SKNL, is close to getting a Rs200 crore PE infusion by the end of this fiscal.
Luxury brand expected to go public in second quarter next fiscal
MUMBAI: Mumbai-based Reid & Taylor, the Rs 600-crore luxury textiles and ready-to-wear garments brand from S Kumars Nationwide Ltd (SKNL), is close to getting a Rs200 crore private equity (PE) infusion by the end of this fiscal.
A banker familiar with the situation said Reid & Taylor is in the final stage of making a 20% stake dilution in favour of a PE player for Rs 200 crore. It is in talks with three overseas private equity players based in the US, UK and South Asia.
Once the private equity comes in, the company is likely to go public, sources said, adding, the initial public offering is likely during the second quarter next fiscal.
Anees Fazalbhoy, director (business strategy), S Kumars Nationwide Ltd told DNA Money, “I am not ruling out private equity investments, but nothing to share at this stage. We will inform the stock exchanges if any arrangement is finalised and approved by the board in the next few months.”
Meanwhile, Reid & Taylor has decided to set up 80% of its stores on high streets (exclusive outlets) and the rest inside shopping malls, mostly in Mumbai and Delhi. It aims to open 341 exclusive outlets by 2009-2010, each of 1,700 sq ft requiring an investment of Rs30 lakh. It will add 35 stores to the current total of 120 by March-end.
Analyst Darshan Singh of Prime Broking said in a note to clients on January 21 that capacity expansion of Reid &Taylor from 4.8 million metres to 8.4 million metres is now complete. At present, close to 70% of its sales in value terms is from fabrics, with the rest coming from ready-to-wear garments.
According to industry estimates, private equity funds invested about $17 billion in Indian companies last year.
Of this, around $4.2 billion was in some 80 deals in listed entities.
Private Equity Impact 2008, a report released by Venture Intelligence, said PE investors have invested over Rs13,000 crore in the country during 2007.
r_mithun@dnaindia.net
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