L Capital exits four-year investment in Fabindia

L Capital, the private equity firm backed by global luxury conglomerate LVMH group, has moved out of its investment in ethnic retailer Fabindia. The investment firm has sold 16 per cent stake in Fabindia Overseas to Hasham Investment and Trading, an affiliate of Wipro chairman Azim Premji's private investment arm PremjiInvest and two other unnamed individuals.

This is L Capital’s third reported exit from India. Last year. It had exited its three-year-old investment in PVR, the country's largest multiplex chain operator. It is said that PVR was its first investment outside the apparel business in India and first private investment in public equity (PIPE) deal. It also sold its entire stake in PVR Leisure, the mall entertainment and gaming arena arm of PVR last year.

Besides, it counts apparel retailer Genesis Luxury among its Indian portfolio firms. The PE firm had not made any fresh investments in the country since 2012, as per VCC Edge, the data research platform of News Corp VCCircle. The company’s promoters have also bought back 4 per cent stake held by L Capital in Fabindia International. The deal is valued at Rs 730 crores.

It was in 2012 that L Capital had bought 8 per cent stake in Fabindia from Wolfensohn Capital Partners for around Rs 150 crores. In June this year, PE giant Blackstone sold around 10 per cent stake in garment exporter Gokaldas Exports or one-sixth of its total holding in the firm as it was looking to gradually liquidate one of its loss-making investments in India. SP Apparels, the maker of menswear under the Crocodile brand, also went for a public listing in August.