PE investors set for partial exits in Genesis Colors' India IPO

Genesis' offering will consist of a fresh offer of shares aggregating up to INR3.8 billion ($57 million), along with up to 1.92 million shares from existing shareholders. The secondary offering comprises 859,000 shares from Henderson, 556,000 from Mayfield and 161,000 from InnoVen, according to a filing. Pricing for the shares and the size of the fresh offer have not been announced.

The primary object of the offering is to increase Genesis' stake in its subsidiary Genesis Luxury Fashion (GLF); the company currently holds a 52% stake in GLF, which it plans to raise to 94% for INR3.2 billion. The remaining proceeds will be used for general corporate purposes.

Genesis, founded in 1998, is the holding company for Indian labels Satya Paul and Bwitch, and through GLF distributes a number international luxury brands such as Jimmy Choo and Armani. It sells its products through exclusive brand outlets, department store kiosks and local trade stores, as well as through its website and five other e-commerce platforms. The company also has a presence in the US, Canada and Dubai.

For the year ended March 2016, Genesis recorded INR1.2 billion in revenue, about the same as the previous year. Over the same period the company's net losses narrowed from INR131 million to INR55 million.

Mayfield and InnoVen - then called SVB India Advisors - first invested in Genesis in 2008; along with Sequoia Capital India the firms committed INR1.1 billion for a minority stake. Henderson invested the following year, committing $17 million.

Mayfield's investment came from its first India fund, which closed in 2008 with $111 million in commitments. The firm's second India fund closed in 2014 at $108 million; in addition, it recently raised $525 million across two global funds.

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• Topics
• South Asia
• Consumer
• IPO
• India
• Mayfield
• Innoven Capital
• Henderson Equity Partners
• Exit