L Capital Asia in talks to back India’s Kingdom of Dreams – report

The two parties have already signed a term sheet and the deal is expected to close in a couple of weeks, people close to the development told The Economic Times. Anumod Sharma, GINC chairman and managing director, has confirmed that the company was talking to a few private equity players.

"We have received term sheets from three private equity companies and will finalize by next week," Sharma said. "The idea is to raise INR2 billion for expansion. In the first phase, we are looking to sell around a 20% stake in the company."

The investment will be used for GINC's new project in Mumbai, which will require an investment of INR3 billion. The company is also planning to expand the existing Kingdom of Dreams in Gurgaon.

L Capital has been scaling up its investments in India. In July 2011, it made its first investment in the country in purchasing a 25.5% stake in New Delhi-based Genesis, which operates 125 stores and franchises for luxury brands including Just Cavalli, Bottega Veneta and Jimmy Choo. In February, it also bought Wolfensohn Capital Partners' 8% stake in Indian fashion company Fabindia.

In August, the private equity player agreed to invest just under INR1.1 billion in cinema and entertainment company PVR for a 10% stake. As part of the deal, L Capital set up a joint venture with the Indian firm that will focus on in-mall entertainment, gaming, food and leisure.

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• Topics
• South Asia
• Expansion
• Consumer
• India
• L Capital Asia