Mudra Lifestyle looks to sell stake to Korean apparel co

MUMBAI: Mudra Lifestyle, an integrated textile company, has started negotiations with the South Korean lifestyle conglomerate E-Land Group for a possible stake sale, said a person familiar with the matter.

The person, who did not wish to be named, said the Korean company would acquire a majority stake in Mudra Lifestyle, if the deal materialised.

Ravindra Agarwal, joint managing director of Mudra Lifestyle, confirmed to ET that both parties had initial discussions. “However, we are yet to decide on the exact nature of the arrangement we may have. Things are at a preliminary stage,” he said. An email sent to an E-Land spokesperson in Seoul remained unanswered.

The person earlier quoted said that the Agarwal family, promoters of Mudra Lifestyle, was asking for premium to divest a majority stake. The promoters currently hold a 54.4% stake.

On Tuesday, Mudra Lifestyle’s scrip closed at Rs 45.4, putting the company’s market capitalisation at Rs 163 crore.
The Rs 365-crore Murda Lifestyle is into fabrics and garments making. It also processes and designs apparels.

If the deal materialises, South Korea’s largest integrated textile and branded apparel company, which has a strong presence in China too, will get a foothold in the low-cost, high-quality textiles market in India. Mudra Lifestyle will get the benefit of huge institutional orders that E-Land services enjoy in case a deal takes place, said Sangeeta Tripathi, senior analyst, Sharekhan.