Bengaluru-based women's ethnic wear brand Soch is reportedly in discussions with a few private equity (PE) funds to sell a majority stake that would value the enterprise at around $200 million (approximately Rs 1,400 crore).
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PE firms L Catterton, Westbridge Capital and CX Partners may together acquire a controlling stake in the ethnic wear brand of MD Retail, the Times of India reported, citing "people privy to the matter."
Established in 2005, Soch brand offers suits, sarees and kurtis. Its parent company MD Retail operates in 77 locations across India.
L Catterton was created in 2016 by merging Greenwich-based Catterton with LVMH-backed L Capital, which had investments in Fabindia Overseas Pvt Ltd and Genesis Luxury Fashion Pvt Ltd in India's fast-growing womenswear market.
Once the transaction is completed, Soch's share sale would emerge as a rare one in the domestic apparel sector where most PE funds have picked up smaller stakes in a brand, the TOI report added.
All the concerned parties declined to comment on the development.
Mumbai-based investment bank O3 Capital is advising Soch on the transaction.
Last year, New Delhi-based TCNS Clothing Company Pvt Ltd, which runs women's fashion brand W, raised $140 million from PE major TA Associates. Similarly, Ritu Kumar tapped Everstone Capital and BIBA from Warburg Pincus for funds over the past few years.
