L Capital PE arm of LVMH acquires stake in Fabindia AZB and Luthra advise

L Capital, the private equity arm of the world’s biggest luxury group, Louis Vuitton Moet Hennessy (LVMH), has bought 8 percent in Fabindia from Wolfensohn Capital Partners. L Capital has invested Rs. 150 crore to acquire stake in Fabindia..AZB & Partners advised L Capital with a team led by Partners Ajay Bahl and Anil Kasturi along with Senior Associate Nandita Govind and Associates Atreyee Banerjee, Shlok Chandra and Chandni Ghei..Luthra & Luthra advised Wolfensohn with a team led by Corporate Partner Dr. Shweta Hingorani along with Senior Associate Vaibhav Kakkar. Luthra Tax Partner S.R. Patnaik too advised on the transaction.AZB Partner Anil Kasturi informed Bar & Bench that Vikas Vig, Senior Partner at Chartered Accountants firm Mohinder Puri & Co. led the entire transaction for Fabindia..Speaking on the transaction Anil said, “It was a very interesting transaction. There were several bidders particularly given the brand involved. L Capital and and Premji Invest came out on top”..ET reports, the US venture capital fund owned by ex-World Bank president James Wolfensohn had invested $10 million in the company in 2007. With the current round of funding, Fabindia will expand its operations both in the domestic and international markets..Premji Invest, the investment fund owned by Wipro’s Chairman, Azim Premji, has acquired a 7 percent stake in Fabindia for Rs. 100-125 crore..The company plans to open another 40 outlets in India, and expand in the overseas markets especially in the UK, where it already owns a chain of lifestyle stores called East, and also strengthen its backend infrastructure..Last year, L Capital had made its first investment in India by acquiring 25.5 percent stake in Sanjay Kapoor-promoted Genesis Luxury Fashion. Amarchand Mangaldas had advised Genesis Luxury Fashion while J. Sagar Associates advised L Capital.