India Value Fund to pick up majority stake in Spykar

According to the industry sources, India Value Fund

Advisors (IVFA), an India-focused private equity (PE) fund, with a corpus of 1.2 billion dollars (over 7,000 crores), is picking up a controlling stake in Spykar Lifestyle. It may be recalled that Kishore Biyani’s Future Group, Spencer’s Retail of the RP-Sanjiv Goenka Group, the Aditya Birla Group and Everstone Capital were also eyeing to acquire Avigo’s stake in Spykar.

As per the sources, Avigo Capital Partners will sell their 60 percent stake in Spykar to IVFA and the deal would get through by next month. Avigo was looking for an enterprise value of Rs 350-400 crores for Spykar. Last year, Avigo had taken over the reins from the promoter after roping in its global investor, Metmin Investments, to acquire 30 percent 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.

A recent report by retail consultancy Technopak Advisors says denim is the fastest growing apparel segment, with a compounded annual rise of 16 percent. The denim market in India is pegged at Rs 8,000 crores.