Page 36 - IACC Newsletter August-September 2013 Issue 13

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New York headquartered Warburg set to buy Rs 350cr stake in Biba
Global private equity fund Warburg Pincus is set to buy a Rs 350-crore minority stake in Indian ethnic wear brand Biba,
including purchase of the stake held by Kishore Biyani's Future Ventures, said people directly familiar with the matter.
The deal - in which Warburg would be joined by Fearing Capital, a PE firm promoted by Aditya Parekh, son of HDFC
chairman Deepak Parekh - values Biba at around Rs 1,200 crore. Future Ventures, formerly an investment arm of Biyani's
Future group, had put its 28% stake in Biba along with its 22% stake in designer Anita Dongre's AND on sale.
Sources said Warburg plans to mop up the Future Ventures stake, and an additional 3-4% stake will come from the
promoter and issuance of new shares. General Atlantic is likely to pick up Future Ventures's stake in AND, sources
added.
Also Future Lifestyle Fashions, which now houses all of Biyani's fashion brands, will make a tenfold gain from these two
investments by raising about Rs 500 crore post deal closure. Biyani said he could not comment on the development
while Biba's MD Siddharth Bindra declined to comment when contacted by TOI. Mid-market investment bank Equirus
Capital was the advisor on the deal.
PE funds including CX Partners, ChrysCapital, Norwest Venture Partners along with Renuka Ramnath's Multiples private
equity were in the fray to pick up the 30% stake in the 27-year-old retail brand founded by Meena Bindra. Biba started
off from Bindra's line of salwar, kameez and dupattas at affordable price points. The brand operates 118 stores across
India with a turnover of Rs 350 crore in FY13 and operating profit of Rs 80 crore.
The last big deal in the Indian apparel space was struck when Premji Invest, the investment arm of Azim Premji, picked
up a 7% stake in Fabindia for Rs 100-125 crore, valuing the John Bissell Company at over Rs 1,500 crore. L Capital had
also bought an 8% in Fabindia from Wolfensohn Capital Partners last year.
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US firm Bayada buys 26% stake in Chennai's India Home Health Care
A US company has bought a 26% stake in Chennai's India Home Health Care, betting that a burgeoning middle class will
lead to significant demand for home healthcare in India. This is the first investment outside the United States for
privately held Bayada, which expects to earn $1 billion (over Rs 6,300 crore) in revenue next year.
"We see the Indian economy advancing and the growing need for compassionate, excellent, and reliable home
healthcare," said Mark Baiada, the company's founder-president, who refused to divulge the financial details of the deal.
Bayada had earlier scouted for locations in Hyderabad to set up an office there. "It unfortunately was not successful and
we contacted IHHC to see if we could work with them to develop professional home healthcare services in India."
The New Jersey-based company, with operation in more than 25 states in the US, plans to buy out IHHC in the next few
years. V Thiyagarajan, founder and managing director of IHHC, said the company chose Bayada over other financial
investors for its knowledge about the sector.
"They understand the space (home healthcare) intimately," said Thiyagarajan, also the founder of enterprise application
developer Sybrant Technologies. "They will help us reach the next level of growth faster."
Industry estimates peg the Indian home healthcare market at $2 billion (over Rs 12,600 crore). The global home
healthcare market is expected to cross $300 billion (about Rs 19 lakh crore) by 2018, according to a report by
Transparency Market Research.