Ahmedabad-based apparel maker Arvind Ltd is looking to dilute a 15% stake in its lifestyle brands arm, Arvind Lifestyle Brands Ltd, for Rs 900 crore ($134 million).
The Times of India, which reported the development citing people it didn’t name, said the company is finalising investment bankers for the fundraising process.
An email query to Arvind Lifestyle didn’t elicit any response by the time of filing this article.
The deal, if it goes through, will value the retailing subsidiary of the Sanjay Lalbhai-led Arvind around Rs 6,000 crore ($900 million).
Arvind Ltd, which counts Multiples PE as an investor, is already listed on the bourses and has a market value of about Rs 8,300 crore. Its shares were 3.5% higher in morning trade on Thursday when the broader Mumbai market was flat.
The report also said that the funding round could be followed by a potential listing of Arvind Lifestyle.
Arvind Lifestyle is the local partner of several international labels such as Arrow, Gap, Nautica, Izod, Tommy Hilfiger and Calvin Klein. It also runs value retail chain Megamart. The company posted total net sales of Rs 2,400 crore last fiscal year, according to the report.
Last year, Arvind Ltd had partnered with Sephora, part of French luxury conglomerate LVMH Moet Hennessy Louis Vuitton, to enter the beauty and cosmetics segment.
Earlier this year, media reports said that Arvind was looking to acquire Sequoia Capital-funded fashion and lifestyle portal Freecultr through its online arm Arvind Internet.
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