PE-backed Indian retailer Monte Carlo sinks below IPO price

The company raised INR3.5 billion ($55.3 million) after offering 54.3 million shares at INR645 apiece, and facilitating a partial exit for Samara as well as the company's promoter, the Nahar Group, according to the prospectus. The stock opened on December 19 down 9.3% and is currently trading at around INR584.

The IPO was entirely comprised of existing shares, with Samara-owned Kanchi Investments selling 1.65 million shares for INR1.06 billion. As a result, its holding in the company has been reduced from 18.51% to 10.94%. The 2.37 million shares Samara still owns are worth INR1.38 billion based on the current market price.

Samara Capital Partners Fund I - a $250 million vehicle that closed in January 2008 - paid INR1.75 billion (then $32 million) for an 18% stake in Monte Carlo in June 2012.

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 clothing.

Monte Carlo distributes products through multi-brand outlets plus a network of exclusive brand outlets, of which there were 196 in India, two in Dubai and one in Kathmandu, as of June 2014. The company is owner and operator of 18 of the India-based outlets, with the rest franchised out.

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.

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