Indivision Capital, the private equity firm sponsored by the Future Group (formerly Pantaloon), has picked up 20 per cent stake in Sula Wines for Rs 50 crore ($12.5 million). This will be the second PE investment in Sula. Earlier, in 2005, GEM India Advisors picked up about 30 per cent stake in Sula for Rs 15 crore ($3.5 million).
GIA is also divesting a part of its holding to Indivision, after which it will keep about 20 per cent stake in Sula. The remaining part of the stake will be in the form of fresh equity.
Sula has appreciated five times in valuation in the last two years, and this seems to be a great investment for GIA. Sula is headed for an IPO in 2008. Sula's founder Rajeev Samant said that he had received offers from a variety of PE funds and strategic investors (probably at 5-10 per cent higher valuation), but decided to go with Indivision, since the group retail chain Big Bazaar offered "excellent synergies for distribution".
Besides Sula, another wine maker Champagne Indage had sold close to 10 per cent stake in the Singapore-based Arisaig Partners in 2005. Reliance Capital did also pick up 9 per cent stake in the Chougule family-controlled Champagne Indage.Grover Vineyards was also looking to raise private equity. Ambit Corporate Finance was advising them.
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