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SAIF Partners to up stake in luxury watch retailer & components maker KDDL

13 December, 2016

Chandigarh-based KDDL Ltd, a manufacturer and supplier of watch components, has received its board’s approval to raise Rs 20 crore ($3 million) more from existing financial investor SAIF Partners.

SAIF that picked 10% stake in KDDL last year for Rs 30 crore ($4.7 million), will hold 16% stake post the fresh preferential allotment, as per VCCircle estimates.

KDDL will issue 7.54 lakh shares to SAIF Partners and 1.13 lakh convertible warrants to its promoters at Rs 265 each, it said on Monday in a stock market disclosure.

Venture capital and growth equity investor SAIF Partners had previously picked shares at Rs 297.50 each.

KDDL shares have lost 38% value since January this year. It closed at Rs 216.45 a share, down 2.92% on BSE in a weak Mumbai market on Monday.

Founded in 1981, KDDL, earlier known as Kamla Dials and Devices Ltd, makes products like watch dials, watch hands, intricate profiles with multiple windows, jewel mounted hands, formed hands, logo profiles on hands, super polished formed hands, luminous hands and non-faceted hands.

The firm has a capacity of making over 30 million hands annually and has global clients in Switzerland and Hong Kong, according to its website.

In 2007, KDDL had acquired Swiss firm Jacques Boegli SA for Rs 3.1 crore to expand its business in Europe, the heart of luxury watch industry.

It is not the first time KDDL is raising PE money. Last December, consumer centric venture fund Sixth Sense Ventures, floated by former IDFC Securities’ managing director and its co-head of research Nikhil Vora, had made its first investment in luxury watches retail chain operator Ethos Ltd.

Ethos, a subsidiary of KDDL, is one of India’s largest chains of luxury watch boutiques with 44 stores across the country and an authorised retailer for around 50 global luxury watch brands.

KDDL, which draws bulk of its overall revenues from the retail arm, saw its consolidated sales rise around 10% to Rs 450 crore but saw net profit decline to Rs 5.3 crore for the year ended 31 March 31, 2016 from Rs 8.68 crore over the previous year.

Kitara Capital is another alternative investment firm that has an exposure to KDDL.

Last week, KDDL also put in Rs 5 crore more into Ethos to raise its stake in the subsidiary from 72.55% to 73.22%.

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SAIF Partners to up stake in luxury watch retailer & components maker KDDL

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