Everstone, India Value Fund join race to buy Avigo’s Spykar - report

Indian conglomerate Aditya Birla Group has also joined the race for the company, which has piqued the interest of global buyout firm Riverside, as well as Spanish fashion retailer Adolfo Dominguez.

Avigo, which targets investments in small- and medium-sized enterprises, put its majority stake in the company - India's biggest domestic denim brand - up for sale in March. Lincoln International won the sales mandate to find an appropriate suitor.

"There are 4-6 Indian and international players with whom we are at an advanced stage of negotiations. It will take 3-4 weeks to finalise a deal," Hari Krishnan, managing director of Avigo Capital, told The Economic Times.

Avigo is apparently hoping to offload Spykar for an enterprise value of INR3.5-4.5 billion ($71-81 million).

Last year, Avigo - which originally invested around INR250 million in Spykar in 2007 - brought in Metmin Investments as a co-investor to acquire a majority shareholding in the company for an extra INR300 million. Avigo had initially been planning to exit its minority stake instead.

Spykar was founded in 1992 by Prasad Pabrekar, who owns the remaining 40% of the business. Its sells casual wear and accessories for men and women via 1,000 multi-brand outlets and 198 exclusive brand outlets across India.

 

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• Topics
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