Mumbai-based private equity fund Samara Capital has invested Rs 175 crore ($32 million) to acquire 20 per cent stake in Monte Carlo Fashions Ltd, an apparel manufacturing and retailing company. The funding will be used to meet working capital requirements and Capex needs.
Monte Carlo Fashions is a part of the Punjab-based Nahar Group. Last year, the group’s flagship Oswal Woollen Mills hived off this premium apparel brand into a separate entity to unlock the value of the brand through IPO and private placement. Monte Carlo was valued at Rs 850 crore when it was hived off from the parent. The company said last November that it was looking to dilute up to 25-30 per cent stake through private equity and public issue for raising Rs 330-380 crore from PE funds and IPO.
The current deal values the privately held firm at Rs 875 crore or $160 million. Religare Capital was the advisor for the transaction.
Apart from winter wear where it has a market share of 50 per cent, Monte Carlo Fashions also offers non-winter categories, lifestyle garments and sportswear for men and women. The company operates through 145 exclusive brand outlets, 800 multi-brand outlets and 60 large-format stores.
In another large transaction in the apparel retail space, Pantaloon Retail struck a deal with Aditya Birla Nuvo to sell its retail business, housing fashion apparel and accessories.
Founded by Sumeet Narang, Samara Capital invests in companies operating across infrastructure, consumer, products & services, financial services, pharmaceuticals, healthcare, IT/BPO, media and manufacturing space.
In October 2010, Samara invested Rs 150 crore in Thriveni Earthmovers Ltd, one of the leading providers of mining services in India, primarily in the iron ore segment. Other investee companies include Asian Oilfield Services Ltd, Guardian Lifecare Pvt Ltd, Global Coal & Mining Pvt Ltd, Asian Oilfield Services Ltd, TVC SkyShop Ltd and Flemingo Duty Free Shops Pvt Ltd, among others.