India - Samara Capital plans to invest Rs 180 crore in Monte Carlo Fashions
Dated- 07 Jun , 2012 - India
India-focussed private equity firm Samara Capital is close to investing Rs 180 crore in Ludhiana-based apparel retailer Monte Carlo Fashions. Monte Carlo, which is part of Punjab-based Nahar Group, will sell 20% for the consideration, valuing the 26-year-old brand known for its woollen wear at Rs 1,000 crore, sources said.
Monte Carlo was launched by Oswal Woollen Mills in 1984 and over the years has evolved as a market leader in the woolen knitwear segment. Religare Capital Markets and KPMG Corporate Finance were the financial advisors to the transaction. Tarun Kataria, CEO of Religare Capital Markets India, confirmed the transaction.
"Monte Carlo has significant potential to create value. The transaction reinforces the India consumption story and the fact that high-quality assets still command a premium ," he said. Kataria declined to divulge financial details. Samara Capital declined to comment on the deal. Monte Carlo could not be reached for comment.
Monte Carlo was hived off from Oswal Woollen Mills, which is 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. Post the demerger with its parent , Monte Carlo Fashions owns a garment manufacturing facility and a retail business, while OWM took control of spinning, yarn and denim businesses.