Lilliput dilutes stake again

Kidswear maker and retailer Lilliput will sell an undisclosed stake to private equity firm TPG Growth for

around Rs 115 crores. This will be the second time the New Delhi-based retail player dilutes stake within a week after agreeing to sell 31 per cent stake for around Rs 270 crores to private equity player Bain Capital, thus putting the total valuation of the firm at around Rs 870 crores. One of Lilliput’s old stakeholders, Everstone Capital, will be exiting the company. Everstone had held an undisclosed stake in Lilliput since 2006.  The capital raised from the stake-sale would be used to fund expansion plans, including opening 18 new stores of Lilliput’s large format chain Lilliput World by the end of this year.

Bain Capital and TPG Growth will invest a total of $86 million (around Rs 385 crores) for an undisclosed significant minority stake in the company. Lilliput operates 235 regular format stores in India, and 30 more outlets in nine countries worldwide, which specialize in apparels. Besides, it also has one Lilliput World outlet in Delhi. It manufactures and exports to global brands like Gap, Next, Carter’s and Old Navy.  The company is also looking at doubling its turnover to Rs 800 crores by 2011-12, from Rs 415 crores last fiscal.