Sports Station may offload stake

Specialty retailer Sports Station may offload a big stake to induct strategic investors

into the company. The New Delhi-based firm, which is a distribution and manufacturing ally to global brands like Nike, Levi’s and Lotto, could possibly offer majority equity to a corporate house with interests in the retail industry. Besides, the company also operates its own multi-brand retail formats like Shoe Tree and Vale Station even though these form only a part of the overall revenues.

Private equity firms Tano Capital and Halcyon, along with a few high net-worth investors, hold around 45 per cent stake in the company with annualized revenue of over Rs 350 crores, which include its footwear manufacturing operations. A potential deal here will essentially be a secondary transaction with the PE funds exiting, while the promoter Rishab Soni may not exit. Alternatively, Sports Station is also exploring another round of fundraising to pursue its expansion plans. It could look at another tranche of $10 million if talks in this direction gather steam.

Sports Station has been exploring strategic options after the firm’s plans for an initial public offer did not take off. The company’s footwear manufacturing units cater to some of the lifestyle sports brands such as Reebok and Nike.