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AZB first for Louis Vuitton PE in Fabindia Rs 275 cr sales with Luthra, Menon, Vig

India, fabricating fabulous kurtas since 1960
India, fabricating fabulous kurtas since 1960

AZB & Partners has for the first time advised L Capital, the private equity arm of luxury goods giant Louis Vuitton Moët Hennesy (LVMH), which bought 8 per cent in Indian clothes and lifestyle product retailer Fabindia from Wolfensohn Capital Partners, which was represented by Luthra & Luthra. Menon Associates is understood to be representing Premji Invest on its 7 per cent investment.

AZB Delhi managing partner Ajay Bahl and partner Anil Kasturi acted for L Capital. “It was a very, very interesting deal,” he said. “It was very challenging in many ways because there were so many different options because of different suitors, etc and because [Fabindia is] such an iconic asset.”

Chartered accountant Vikas Vig, who is senior partner at accountancy firm Mohinder Puri & Co, is a long-standing trusted advisor to Fabindia and assisted the company on this investment, explained Bahl.

Bahl, said that he knew Vig well from when both were chartered accountants before Bahl entered law practice, and Vig had therefore referred L Capital to AZB for this transaction. L Capital started a $640m fund in 2011 to target India and other emerging markets, according to PTI.

The deal value was around Rs 150 crore, according to a press release from AZB, with the firm structuring the transaction and carrying out the due diligence, drafting, negotiation and finalisation of the transaction documents.

L Capital bought the stake from venture capital fund Wolfensohn Capital Partners, which is understood to have been advised by Luthra & Luthra partner Dr Shweta Hingorani and senior associate Vaibhav Kakkar, as well as tax partner SR Patnaik.

Wolfensohn bought its stake in Fabindia in 2007 for around $10m, and the entire company was now valued at around Rs 1,400 crore ($283m), reported PTI on 15 February.

Menon Associates principal consultant Satish Menon advised Wipro boss Azim Premji’s fund Premji Invest on its purchase of 7 per cent in Fabindia for around Rs 125 crore, which PTI reported on 1 March.

Photo from Fabindia web-shop

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