INTERVIEW - S Kumars to raise funds via listing; PE

MUMBAI Thu Mar 18, 2010 5:50pm IST

Related Topics

MUMBAI (Reuters) - Textiles maker S Kumars Nationwide Ltd is looking to raise between $100 million to $150 million by listing its subsidiary, Reid & Taylor, in the next six months, a top official said on Thursday.

The company is also talking to private equity (PE) firms to spin off its brand 'Belmonte', Managing Director and Vice Chairman Nitin Kasliwal told Reuters in an interview.

S Kumars currently holds about 75 percent in Reid & Taylor, with Singapore's GIC owning the rest.

In June 2008, GIC Special Investments had agreed to invest 9 billion rupees in Reid & Taylor through a fresh issue of shares and warrants.

"It will take about six months for the listing, we may also do it earlier," Kasliwal said.

"Part of the IPO proceeds would go for retail expansion, part for capacity expansion and part of it to increase our presence in overseas markets," he added.

S Kumars sells apparels under a variety of brands at different price points, from 'Reid & Taylor' which caters to the premium and upper-middle segment of the suiting market to 'Belmonte' suits and shirts for the economy segment.

It also sells suiting under the 'S.Kumars' brand and home textiles under the 'Carmichael House' brand.

Kasliwal said S Kumars was talking to 4-5 foreign PE players for spinning off 'Belmonte' into a separate subsidiary in the next 3-4 months to bring in more funds.

"We will unlock value and bring in PE players there. We have got very firm interest from 4-5 people," he said, adding that they were based overseas.

S Kumars is also looking to launch a share sale to institutions worth up to $100 million within the next 12 months as valuations improve, he said.

It has set a capex of about 7 billion rupees for the next fiscal for brand building and for new equipment and the funds would be raised via a combination of internal accruals, debt and fresh equity, Kasliwal said.

S Kumars had in June 2009 acquired U.S. clothing company Hartmarx Corp for about $120 million.

"We are not doing any more acquisitions over the next six months. We are consolidating. We will grow our existing brands."

Its international business accounts for about 45 percent of its consolidated revenues and the firm was seeing a good pick-up in orders from traditional strongholds such as the U.S. and Europe, he added.

Shares of S Kumars ended up 12.02 percent at 54.05 rupees in a firm Mumbai market.

(Editing by Harish Nambiar)

(For more business news on Reuters Money visit www.reutersmoney.in)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage