Kimaya eyes domestic PE funds, may dilute 20% stake

Kimaya eyes domestic PE funds, may dilute 20% stake

Mumbai: With FDI in multi-brand retail delayed, fashion house Kimaya Studios is now in talks with domestic private equity firms to raise capital for scaling-up its operations and store-network in the country, a top company official said.

The company could divest around 15-20% of its stake for the purpose, he said.

“We are talking to a few Indian PE players to raise capital by off-loading around 15-20% stake. We are keen to get a good valuation -- much will hinge upon the valuation we get," Kimaya’s managing director Pradeep Hirani said.

While he did not divulge the amount the company hoped to raise from the PE players, it is understood that it would be lesser than the 100-crore it was earlier seeking from overseas PE players.

Hirani said that overseas players give a better valuation than their Indian peers but he was still confident of getting a decent valuation.

Global consultancy firm, KPMG, is the adviser for the retailer, which has already initiated talks with a few Indian players.

Hirani did not disclose the identities of the PE firms Kimaya is in talks with--however, some of Indian PE firms which could be interested in the deal included ICICI Venture, ChrysCapital, India Value Fund, Kotak Private Equity, Axis PE, Everstone Capital and Ascent Capital, among others

Kimaya retails high-end designer wear, both Indian and international, for women and has recently started its mens line called Ayamik, which has only one store in Mumbai. The company plans to scale this up.

Currently, Kimaya runs around 16 stores with areas ranging between 2,500-10,000 sq ft in the major metros and Dubai and plans to add another eight stores in FY 12. The new stores would come up in Tier-I and II cities such as Chandigarh, Ludhiana, Surat, Ahmedabad, Hyderabad, Pune and Noida.

Besides, it also looks at expanding its footprint in the Middle-East markets such as Qatar, Saudi Arabia and Kuwait. It is also exploring opportunities in the European and the US markets.

Asked if he was mulling an IPO, Hirani said “this is still some time away, say after three-years."

Kimaya, by then, expects to open at least 50 multi-brand retail stores pan-India, he said.