Biyani grabs Spykar biz for Rs 100 cr

Finally, leaving aside several aspirants lined up to grab Spykar denim business, Kishore Biyani's Future

Lifestyle Fashion is said to be buying 75 percent stake in the company for Rs 100 crores. Of late, Biyani has been pushing the group’s fashion business, which brings in higher margins, by launching private labels or acquiring fashion brands. Spykar is the third denim brand to join Future Group's portfolio. It already has Jealous 21 and Bare. Biyani has 35 fashion brands with a combined turnover of more than Rs 7,000 crores. Mumbai-based Spykar already has a strong presence across 1,000 multi brand stores and exclusive outlets. Avigo, an India focused private equity firm, and its co-investor Metmin Holdings together hold 60 percent stake in Spykar, while Spykar founder Prasad Pabrekar holds the remaining 40 percent share in the company. The buzz is that Biyani will pump in more capital into the brand which will dilute the promoter’s stronghold.

Though Spykar had been denying media reports, for the past few years, several companies were speculated to be in talks with Avigo to buy majority stake in the company. Apart from Future Group, men’s label Blackberrys, Spencer’s Retail, the flagship company of RP-Sanjiv Goenka Group too had joined the race to acquire one of the biggest domestic denim brands. In 2011, Avigo took over the reins from promoter after roping in global investor, Metmin Investments, to acquire 30 percent stake in Spykar by pumping in Rs 30 crores. LaterAvigo increased its stake

According to sources, Aditya Birla Group was also in discussions for the deal to expand its retail brand portfolio. Apart from these companies, PE funds, Value Fund Advisors and Everstone Capital had also shown their interest in Avigo’s stake.