Fast-moving consumer goods company CavinKare Pvt. Ltd. is planning a public offering of its shares fior sale n a year or two, said a top executive.
“We are planning to go public,” said C.K. Ranganathan, CMD, CavinKare. “It might happen after the 2019 general elections or during 2020,” he added.
‘$1-billion valuation’
According to Mr. Ranganathan, the FMCG conglomerate currently commands a valuation of about $1 billion. In 2017, CavinKare had bought back the 14% stake held by private equity major ChrysCapital.
“The next phase of growth will come through inorganic growth. We need money. The public offer will be in the range of ₹500 crore to ₹1,000 crore,” he said adding that Trends in Vogue, the salon business division, would be second in line to go public.
“Trends in Vogue has 400 [both company-owned and franchisees] salons in India, and we would like to [reach] 1,000 salons. The second public offering will happen much later.”
Highlighting that the firm had been adopting an asset-light model in which production is outsourced to a third party, Mr. Ranganathan said CavinKare had set up its own units in Sri Lanka and Bangladesh due to the taxation structure in those countries.
He said he was hopeful of the company crossing the ₹2,000-crore revenue mark this year compared with last year’s ₹1,600 crore.
