Everstone, India Value Fund, Aditya Birla eye stake in Spykar

Everstone Capital, India Value Fund and the Aditya Birla Group

are said to be vying for a controlling stake in Spykar Lifestyle, the biggest home-grown denim brand. The three firms joined the race after Avigo Capital, which has 60 per cent stake in Spykar decided to exit mandating global investment bank Lincoln International to scout for potential buyers.

Along with these three companies, the global buyout fund Riverside and marquee Spanish fashion retailer Adolfo Dominguez, which entered India with an outlet in Delhi last year are also in the acquisition race. Last year, Avigo had taken over reins from the promoter after roping in its global investor, Metmin Investments, to acquire 30 per cent stake in Spykar by pumping in Rs 30 crores. Metmin Investments is owned by NRI tycoon Raj Bagri, who was the chairman of London Metal Exchange. In 2007, Avigo had invested about Rs 25 crores in Spykar.

Spykar, a known name in denim and casual wear arena was established by Prasad Pabrekar in 1992. Currently, Pabrekar holds 40 per cent in the company. Spykar makes casual wear and accessories for men and women. Spykar products are sold through 1,000 multi-brand outlets and 198 exclusive brand outlets across the country. Over the past two and half years, Spykar has undergone major restructuring that includes shutting of 150 loss-making stores.