Premji Invest acquires 7% stake Fabindia

Fabindia has sold seven per cent stake in the company

to Azim Premji’s Premji Invest for about Rs 125 crores to fund its proposed expansion plans. After selling 8 per sent stake to L Capital, the private equity arm of luxury conglomerate LVMH Group a month ago, this is the second move by the retailer to spread its network across the country.

Fabindia, one of India’s most profitable retail companies, has been looking to raise Rs 200 crores to fuel its expansion plans and existing operations through a round of fresh equity investments and by buying out the eight per cent stake held by the existing investor, Wolfensohn Capital Partners, which is keen on making an exit. The company plans to open another 40 outlets in India, and expand in the overseas markets especially the UK, where it already owns a chain of lifestyle stores called East, and also strengthen its backend infrastructure.

In 2007, the fund held by former World Bank President James Wolfensohn, acquired about eight per cent stake in Fabindia for Rs 50 crores. Today the company is estimated to be valued between Rs 1,000 to Rs 1,200 crores. The promoters, led by William Bissell and his family, own 50 per cent stake in Fabindia.

Fabindia, known for its handcrafted jewellery and kurtas, besides household furnishings, pottery, organic food and handicraft, operates close to 150 outlets across major cities and small towns. It sells 66,000 products sourced from India's 212 districts.