Samara set for partial exit as Monte Carlo files for IPO

The float will provide Samara with a partial exit, two years after its initial investment. According to a draft red herring prospectus, existing Monte Carlo shareholders will sell 5.4 million shares, representing a 25% stake. The pricing of the issue is yet to be set.

Samara paid INR1.75 billion (then $32 million) for an 18% stake in Monte Carlo in June 2012. The GP acquired 2.8 million shares via a capital increase and a further 1.5 million shares through the provision of replacement capital to the company's promoters. Samara is looking to shed around half of its stake in the IPO. The rest of the shares are being offered by the promoters.

The company launched in 1984 as part of woolen apparel brand Oswal Woollen Mills before being carved out in 2011. It now focuses on garment manufacturing and the retail of summer and winter garments.

The company sells through exclusive branded outlets - of which there are 191 in India - and multi-branded retailers. Of Monte Carlo's 191 stores, 17 are operated directly and the rest through franchisee partners. The company also has two stores in Dubai and one in Nepal.

In the 2013-2014 financial year, the company posted a net profit of INR553 million, up from INR494.8 million the previous year. Revenue rose from INR4.2 billion to INR5.2 billion over the same period.

SBI Capital, Axis Capital, Edelweiss and Religare Capital Markets are managing the offering.

 

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• Topics
• South Asia
• Exits
• Consumer
• India
• Exit
• Samara Capital
• IPO
• Consumer