Billionaire Mukesh Ambani-led Reliance Industries Ltd has increased its stake in Genesis Colors Ltd and bought shares of five units of the luxury fashion retailer.
RIL unit Reliance Retail Ventures Ltd (RRVL) acquired a 16.31% stake in Genesis Colors, which owns fashion label Satya Paul, for Rs 34.80 crore, as per a stock market disclosure.
RRVL, through unit Reliance Brands Ltd, already held a 49.46% stake in Genesis Colors. The total stake of RRVL in Genesis Colors is now 65.77%.
Besides, RRVL has invested a total of Rs 57.03 crore in five other companies that sell branded readymade garments, bags, footwear, cosmetics and accessories.
It bought a 2.07% stake in Genesis Luxury Fashion Pvt. Ltd for Rs 3.37 crore, taking its holding in the company to 49.37%. Genesis Luxury Fashion distributes premium brands such as Jimmy Choo, Armani, Paul Smith and Bottega Veneta.
RRVL also purchased a 50% stake each in GLF Lifestyle Brands Pvt. Ltd and Genesis La Mode Pvt. Ltd for Rs 38.45 crore and Rs 10.57 crore, respectively. Besides, it acquired 50% each of GML India Fashion Pvt. Ltd and GLB Body Care Pvt. Ltd for Rs 4.48 crore and Rs 16 lakh, respectively.
Reliance said the acquisitions will strengthen its foothold in the retail industry.
Genesis Colors was incorporated in November 1998. Its revenue for 2017-18 was Rs 86.02 crore, according to provisional numbers. It reported revenue of Rs 80.04 crore and Rs 114.16 crore in 2016-17 and 2015-16, respectively.
The fashion retailer is backed by venture capital firm Sequoia Capital. The VC firm had first invested in Genesis Colors in 2008 and put Rs 50 crore more into the company last year.
In September 2016, Genesis filed draft documents for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The capital markets regulator approved the IPO plan in February last year.
Genesis had planned to refile for the IPO after raising additional funding from Sequoia. However, it hasn't yet filed the documents again.