Metmin Investments picks majority stake in Spykar

Metmin Investments, a HNI fund owned by Apurva Bagri, has increased its stake from 32 to 60 percent for about Rs

300 crores in denim brand Spykar. Metmin Investments has acquired the stake held by the private equity player Avigo Capital Partners. The Indian promoters will continue to hold the remaining 40 percent stake in the company.

The brand would now expand its product portfolio to include products like talc, hand wash, body gels and shampoos. The aim is to increase its FMCG section establishing a lifestyle positioning in the market. The brand has already launched deos and perfumes in the past. The company has licensed its FMCG business to Staark Accessories with 150 distributors reaching out to 22 states. Its franchise-owned 235 stores would also be used to serve as additional selling points for its personal care products.

Though Spykar had been denying the news, for the past few years, several companies were speculated to be in talks with Avigo to buy the 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 the biggest domestic denim player. In 2011, Avigo took 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.

As per sources, Aditya Birla Group was also in discussions for acquiring 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.