Warburg to acquire Rs 350 cr stake in Biba

It’s official now. Global private equity fund Warburg

Pincus would acquire Future Group’s stake along with Rs 350-crores minority stake in Indian ethnic fashion wear brand Biba. As per sources, Warburg is joined by Fearing Capital, a PE firm promoted by Aditya Parekh, which values Biba at around Rs 1,200 crores.

CX Partners, ChrysCapital, TA Associates and General Atlantic Partners were in the race to acquire the said stake. After recent restructuring, the group now has three operational companies — Future Retail, Future Ventures and Future Lifestyle Fashions. Biyani had invested around Rs 40 crores in both these fashion brands almost six years ago.

Biba has 118 standalone stores with Rs 350 crores of annual sales and an operating profit of about Rs 80 crores. Biba, founded by Meena Bindra three decade ago, was created from her line of salwar, kameez and dupattas at affordable price points. Last year, Biba had also formed a joint venture with fashion designer Manish Arora to market his premium ethnic wear brand ‘Indian’. The company owns 51 percent stake in the venture.