MUMBAI: Promoters of listed innerwear maker Lovable LingerieBSE 1.87 % are in talks with private equity funds Samaara Capital, Multiples Alternatives and CX Partners to sell anywhere between 15 and 20% stake in the company. The deal, that will also see some primary capital being raised, will be done at around 20% premium to the company’s current market price, said people close to the development.
In June, the promoters had appointed investment bank Kotak Mahindra Capital Co. to look for buyers. “The company has got a term sheet from private equity investors such as Samaara Capital, Multiples Alternatives, and CX Partners,” said a person with direct knowledge of the matter. Last year, private equity investors Nalanda Capital and Sequoia Capital exited their investments in Lovable, three years after the company was listed in 2011.
Started in 1987, Lovable makes women’s innerwear. Emailed queries to CX Partners, Samaara Capital and Multiples did not elicit any response till press time. A spokesperson for the company declined to comment in an emailed response.
While promoters held 67.23% stake in the company as on June 30, 2016, domestic mutual funds including Reliance held 5% stake. For the quarter ended June, the company reported a flat growth in its financials.
While its top line grew 3% YoY to Rs 67.23 crore, the bottom line was flat at Rs 12.15 crore. However, on a sequential basis, the company’s revenue and profits rose 85% and 284%, respectively. For FY16, the company declared a dividend of 15%. In June this year, the company entered into a distribution agreement with Hanes Italy S.R.L and acquired non-exclusive third-party rights to import, distribute, promote and sell certain of its products under the Lovable trademark within the territory of India for 3 years.
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Source: Economic Times
