Spykar buys back 40 per cent stake from Dubai's Avigo for Rs 50 crore

MUMBAI: Denim major Spykar has bought back its 40 per cent stake from Dubai-based Avigo Capital Partners for Rs 50 crore.

"We have bought back our 40 per cent stake for Rs 50 crore. This is through a deferred payment deal — we will pay Avigo the money over the next 18 months," Spykar's Founder and Managing Director, Prasad Pabrekar, said here on Tuesday.

Spykar is a denim-centric casual lifestyle brand for men and women.

Avigo, had, over two years since 2007, taken a 40 per cent stake in Spykar for Rs 40 crore and has now exited the company, he said.

Spykar presently has a 200-strong retail store network and is besides, present in 800 multi-brand outlets as well as 125 locations in several large-format stores like Shoppers Stop, Lifestyle and Globus, among others.

After Avigo's exit, investor interest in Spykar has increased and "we are in talks with investors for getting-in funds of around Rs 30-40 crore," Pabrekar said.

The deal is expected to be sealed soon, probably within one-month, he said, adding the company could dilute up to 15 per cent stake for the purpose.