Future Group in talks for Spykar Jeans buyout

Kishore Biyani-owned Future Group is in discussion with Avigo Capital Partners to buy controlling stake in Spykar Lifestyle, a leading maker of denim in India. According to CNBC-TV18, Future Group has completed due dilligence and the discussions are at advanced stage.

When contacted, Kishore Biyani has denied the reports and said there is no such developments. Avigo management could not be reached for comments.

In last couple of years, Avigo Capital Partners has been in discussions with various investors such as India Value Fund Advisors (IVFA), a India-focused private equity (PE) fund, Spencer’s Retail of the RP-Sanjiv Goenka Group, the Aditya Birla Group and Everstone Capital, to sell their 60% stake in Spykar. Avigo was looking an enterprise value of Spykar at Rs 280 - 300 crore.

The products of Spykar, established in 1992, are sold through 1,000 multi-brand and 200 exclusive brand outlets. It has clocked a revenue of Rs 180 crore last year.

In 2011, Avigo, after bringing in its global investor, Metmin Investments, had acquired about 30% in Spykar by investing about Rs 30 crore. Metmin is owned by Raj Bagri, a non-resident Indian tycoon, earlier a chairman of the London Metal Exchange. In 2007, Avigo had invested about Rs 25 crore in Spykar. Spykar’s founder, Prasad Pabrekar, holds 40% in the company.