Times Private Treaties (TPT), a part of the Bennet and Coleman Co Ltd., has picked up around 12% stake in Gini & Jony Freedom Fashions (GLFFL), which is a wholly owned subsidiary of Gini and Jony Limited. The stake has been acquired in an ads-for-equity deal.
Lakhani Brothers owned Gini & Jony Freedom Fashions is a lifestyle store that retails not only its own brand but about ten more brand in the kids wear category. The store retails other kids brands like Levis Sykes Junior, Gini and Jony, United Colors of Benetton, GJ Jeans, Ben 10, Crocs and Portico.
“These guys understand the entire value chain. They have emerged from the fact that they were manufacturers of premium lifestyle kids wear and then have graduated into the retailing of that,” said Karthik Reddy, Vice President, Times Private Treaties. TPT expects the children’s wear segment to grow dramatically in the coming times.
TPT views the apparel retailing sector as a very attractive space for its ‘treaties’. Reddy said, “Primarily apparel for us is very attractive because they rely on print (newspapers) for a fair amount for brand visibility. Typically the target segment, that we deliver in print are also attractive to them.”
TPT would look at exiting GJFFL through an IPO in about 4-6 years. Reddy says, “We are very realistic about our expectations on unlisted companies that we won’t get exits in less than 4 years and it can go up to 6 years depending on the market conditions.”
TPT will continue to invest in sectors that are “consumer friendly and consumer heavy” in terms of their target market and belong to the new categories of spending like financial services, TV distribution, speciality retailing etc.
Lakhani Brothers, the promoters of Gini and Jony Limited, hold 65% stake in the company while about 22% stake is held by Reliance Capital. Gini and Jony Ltd. is looking to go for an IPO and has already received SEBI approval for the same.