Bangalore: Pantaloon Industries has acquired a majority stake in the Rs85-crore Bangalore-based Indus League Clothing. The company has bought out venture capital firm ICICI Ventures' entire 68.29 per cent stake in the company for Rs24.09 crore.
Indus League, which promotes the Indigo Nation and Sculler's labels, said the management structure and control would not change for now. Pantaloon's acquisition is subject to shareholders' approval.
ICICI Ventures may have exited Pantaloon at a loss, attributed to the accumulated losses of Indus League. When it first picked up a stake in the company in 1999-2000 for an undisclosed sum, it had valued Indus League at Rs50 crore.
However, according to the current deal, Indus League's valuation will be around just Rs35 crore. ICICI Ventures' loss or gain could not be ascertained as it had increased its stake in the company in several tranches over the years.