Monte Carlo to get PE funds worth Rs 180 cr

Private equity firm Samara Capital is close to investing Rs 180

crores in Ludhiana-based apparel retailer Monte Carlo Fashions. Monte Carlo, which is part of the Punjab-based Nahar Group, will sell 20 per cent for the consideration, valuing the 26-year-old brand known for its woolen wear at Rs 1,000 crores. Religare Capital Markets and KPMG Corporate Finance were the financial advisors to the transaction.

Popular brand Monte Carlo was launched by Oswal Woolen Mills in 1984 and over the years it has evolved as a market leader in the woolen knitwear segment.

The transaction reinforces the India consumption story and the fact that high-quality assets still command a premium. Monte Carlo was hived off from Oswal Woolen Mills, the flagship company of the Nahar Group last year to unlock the value of the brand through listing and private placement.

The court-approved demerger process was completed last year. After the demerger with its parent, Monte Carlo Fashions owns a garment manufacturing facility and a retail business, while Oswal Woolen Mills took control of the spinning, yarn and denim businesses.