Genesis Colors Pvt Ltd (GCPL), the holding company of luxury fashion labels Satya Paul, Deepika Gehani, Shobhaa De and Bwitch!, has raised private equity of around Rs 80 crore from Henderson Equity Partners. The company is believed to have diluted 12% stake to Henderson, according to a report in Economic Times.
Sanjay Kapoor, MD of Genesis Colors, confirmed the development to ET. With this funding, the company may look at an IPO at a later date against its original plan of hitting the market earlier. “We will go for an IPO in the next 2-3 years. Without this private placement, it could have been much earlier,” Kapoor said, in the report.
The company plans to utilise the fund in expansion purposes, especially in opening new stores and adding new brands in its portfolio. “The funds will be used to enhance the existing infrastructure, open new stores, and for inorganic growth in brand portfolio,” Kapoor added.
Following the dilution, the promoters’ stake in the company declines to 60%. Earlier in June 2008, GCPL raised Rs 110 crore from Sequoia Capital Fund, Mayfield Fund and Silicon Valley Bank against minority stake in the company.
GCPL currently operates 65 stores under Satya Paul, Samsaara and lingerie brand Bwitch!. Satya Paul, which retails printed sarees and bridal wear, alone operates around 30 stores across the country. Genesis also has distribution rights in India for global luxury brands such as Jimmy Choo, Canali, Aigner, Paul Smith, Just Cavalli and Bogttega Veneta.
Prior to this, Henderson Equity Partners, the PE arm of London-based Henderson Global Investor that has $87-billion under management, invested $21 million in Sharda Worldwide Exports, a Mumbai-based Indian agrochemical company. The fund has also invested in Jubilant Organosys, Hindustan Sanitaryware & Industries and Bharti Tele-Ventures.