New Delhi: Kidswear maker and retailer Lilliput on Wednesday said the company will further sell stake to raise funds to finance its planned expansions as it aims to double turnover to Rs800 crore by 2011-12.
Promoter Sanjeev Narula and private equity player Everstone Capital had on Tuesday agreed to sell a combined stake of 31% in the company to Bain Capital, raising around Rs270 crore, thus putting the total valuation of the firm to around Rs870 crore.
“We are in talks with two more players and something will be finalised within the next couple of days,” Lilliput Kidswear Ltd managing director Sanjeev Narula told PTI.
While he did not comment on the present details, Narula said after the final share sale, he will continue to hold at least 55% stake and remain the chief promoter.
He said the stake sale has been undertaken to raise funds to finance its expansion plans.
“We are looking at an aggressive expansion of our chains. Our aim is to almost double our turnover to Rs800 crore by 2011-12, from Rs415 crore last fiscal,” Narula said.
Regarding the purchase of 31% stake by Bain Capital, Narula said, “Bain Capital will pick up 31% stake in our company, including some share from one of the shareholders, Everstone. They will pay around Rs270 crore under the deal.”
Bain Capital has expertise in various retail ventures in the US market and Narula said Lilliput wants to capitalise on it.
Lilliput will invest the amount secured from the stake sale to fund expansion plan, including opening 18 new stores of its large-format chain ‘Lilliput World’ by the end of this year. Currently it has only one store, located in the Capital.
Lilliput currently operates 235 regular format stores in India, and another 30 outlets in nine foreign countries, which specialises in apparels.
“We will open 18 more large format outlets which will sell our entire range including apparels, ethnic wear, toys and baby care items across the country this year. In addition, we will also expand our regular format by adding 40 outlets in 2010,” Narula said.