Genesis Colors plans to raise Rs 650 crore through IPO

For the first time, Genesis Colors plans to sell shares to the public so as to raise funds for expansion and provide an opportunity to investors to exit. It plans to raise as much as Rs 600-650 crores by selling shares through initial public offering (IPO).

Genesis Colors has been in talks with investment banks such as Edelweiss and Credit Suisse for some time now. It is expected the IPO may happen early next financial year. It is believed to be a mix of new shares and a secondary share sale.

Genesis was founded in 2001 by Sanjay Kapoor, Jyoti Narula and Puneet Nanda. The group’s brands such as Satya Paul, premium lingerie brand Bwitch and accessories business are housed under Genesis Colors. Genesis Luxury Fashion Pvt Ltd is a subsidiary of Genesis Colors and it distributes international brands such as Paul Smith, Bottega Veneta, Jimmy Choo and Armani. The Genesis Group also has joint ventures with British brand Burberry, Italian menswear brand Canali and Villeroy & Boch of Germany for tableware.

In 2008, private equity investors Sequoia Capital and Mayfield invested Rs 110 crores for a minority stake in Genesis Colors. In 2009, the company raised an additional Rs 80 crores from Henderson Private Equity. Genesis Colors has a retail network of around 120 single-brand boutiques, multi-brand stores and shops-in-shops across more than 20 cities. It has also adopted the franchise model. The company’s businesses span designing, manufacturing, warehousing, distribution and retail.