Gokaldas to offload up to 35% in Weekender
Gokaldas Images, the promoter of retail chain - Weekender - plans to offload 30-35% equity in the company.
By Bhanu Pande & Chaitali Chakravorty, TNN |
NEW DELHI: Gokaldas Images, the promoter of retail chain — Weekender — plans to offload 30-35% equity in the company. The company, which was earlier in talks to offload a majority stake, is now in talks with a few private equity players to divest a part of the equity.
When contacted, Sumeer Hinduja, director, Gokaldas Images, confirmed that the company was looking to place a portion of its equity with a PE firm. “We are in talks with several PE players, but nothing has been finalised as yet,” he told ET.
The total value of money that the Bangalore-based retail chain seeks to raise from the divestment is, however, not clear.
Early this year, Gokaldas Images had sold 15-16% stake in the company to IL&FS for around Rs 44 crore. It puts the total valuation of the company at Rs 275 crore.
The previous round of divestment raised money to fund the company’s expansion of its retail brand, Weekender and its production capacity. The company wants to double the production of its suit plant to around 5,000 suits per day and double the turnover of its Weekender retail outlets to around Rs 100 crore by ’06-07.
Besides, it also plans to set up 20 more outlets by March ’07. The company has also decided to open separate outlets for kids and teenagers. At present, garments for both kids and teenagers, were in the same outlet.
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The Rs 400 crore, Gokaldas Images which also has a throbbing exports business, expects to grow at around 25% this year. The company supplies garments to companies such as VF Corporation, which has Lee and Wrangler as some of its brands.
Both retail and textile have become attractive hunting-grounds for PE players. Earlier, Actis had picked 51% in Bangalore-based Nilgiri Dairy for 300 crore and more recently Blue River’s PE team was said to be eyeing a 20% stake in South-based KPR Mills.
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