Louis Vuitton is selling its stake in Fabindia

L Capital, the private equity arm of world's largest luxury goods conglomerate Louis Vuitton Moet Hennessy (LVMH), is planning to sell its stake in the Indian ethnic wear retailer Fabindia Overseas.

L Capital is looking at $100 million (Rs 660 crore) for its 8% holding in the unlisted Indian company, which is roughly more than four times the investment that it had made in 2012. In 2012, L Capital bought this stake from Wolfensohn Capital Partners for Rs 150 crore, when the company was valued at Rs 1,875 crore. If L Capital gets the price that it’s aiming for, Fabindia will be valued at about Rs 8,200 crore.

So far, the company has contacted at least four potential buyers, viz. Temasek (owned by Singapore government), and PE firms Actis, Apax Partners and the Carlyle Group.

Talking of Fabindia, it has more than 200 stores in 79 locations, while being based in Delhi. The customer base of 3 million is intended to be increased to 10 million in coming four years.

Fabindia was the only Indian firm in which L Capital had an investment. As of now, there are no announcements of it investing in any India-based firm.

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