Lilliput bullish on rebuilding brand, to invest Rs 300 cr

After sorting out their differences with PE investors

TPG and Bain Capital, debt-ridden kidswear player - Lilliput is all set to bounce back with aggressive fundraising plans. The Delhi-based retailer has already started another round of fundraising discussions with two Chinese private equity players to raise another Rs 300 crores to meet its planned expansion strategy.

Last week, Sanjeev Narula, promoter of Lilliput had withdrawn all the cases filed against the private equity firms, after its PE investors sold their 45 per cent stake to Narula with a zero return. Lilliput, ready to dilute as much as 30 per cent stake, is looking for a total valuation of Rs 1,500 crores for the company.

In May 2012, L Capital, the PE arm of luxury group LVMH, had backed out from its talks with Lilliput for a possible minority stake buyout, due to valuation mismatch. The company which has a debt of Rs 859 crores has restructured about Rs 586 crores. The complete restructuring is expected by this month end. Major lenders -- Allahabad Bank, Axis Bank and the Oriental Bank of Commerce have agreed to pay Rs 100 crores as working capital with an 18-month moratorium.