Monte Carlo Fashions would launch its own e-retail business after its IPO on December 3 as the public offer would help it meet the norms for e-commerce, a company official said here today. Monte Carlo Fashions is planning a public issue of 54.33 lakh equity shares having face value of Rs 10 each for a price consideration between Rs 630 and Rs 645. It aims to raise Rs 350 crore through the issue. “After IPO, we would have our own e-retailing business. It would be owned by the company,” said Monte Carlo Fashions Chairman Jawahar Oswal. As per the current FDI policy, companies having foreign investment are not allowed any business to consumer (B2C) activities in e-tailing.
Samara Capital, a Mauritius-based private equity firm holds 18.51 per cent stake through its affiliate KIL. “We could not operate our own website because we have FDI in our company… However, when we would be a public listed company, such restriction would go. Then we can run our own website, which is presently run by our group company,” said Monte Carlo Executive Director Sandeep Jain.
Post IPO, Samara Capital would retain 11 per cent stake in the company. The company, however, didn’t make it clear how it can go ahead with its e-commerce venture while Samara continues to hold stake in the company. To a specific query in this regard Jain said “after public listing of December 3, there would be no such restriction among us”. At present, the company is present on online space through various channel parters. “Right now, share of e-retailing is very low, less than 5 per cent, but it is going to grow in the coming year,” said Jain. Monte Carlo was launched in 1984 as an exclusive woolen brand by Oswal Woolen Mills Ltd (OWML) later in 2011 it was demerged into a separate entity. It operates 196 exclusive brand outlets in which 18 are company-owned and operated and 178 are on franchise model. It also has presence on 1,300 multi brand outlets.