Business

Global investor Advent set to buy ‘significant stakes’ in Dixcy

A knitwear unit in Tirupur.   | Photo Credit: The Hindu

Advent International, a leading global private equity investor, has in-principle agree to acquire significant stakes in Dixcy Textiles Private Limited here, a leading inner wear brand.

Industry consultants feel that the interest shown by global private equity investor in a Tirupur unit could be seen as a sign of the cluster’s growth from a mere SME to a potential global corporate hub.

Dixcy, started in 1982 as a proprietorship company, became a private limited two decades later, and was fully under the ownership of founder Prem Prakash Sikka’s family all through its business journey. Even after the financial transactions with Advent were completed, Mr. Sikka would continue as company’s chairman. The Advent International has been making investments in India for almost a decade and invested in industrial majors like Crompton Greaves Consumer Electricals in the recent times.

Shares dilution: When asked the details about the dilution of shares, Dixcy chairman Mr. Prem Prakash Sikka told The Hindu that the details on the percentage of holdings could not be divulged at this juncture as negotiations were still underway.

Public limited: “We consider it as a partnership with Advent International to further strengthen the position of Dixcy brand in the global market. Also, the venture will pursue the plans to make the company a public limited one in the future”, he said. The Dixcy has generated total sales of $120 million from inner-wears, casual wears and T-shirts, among few other premium products, during 2016-17 financial year.

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Printable version | May 11, 2021 6:24:25 AM | https://www.thehindu.com/business/global-investor-advent-set-to-buy-significant-stakes-in-dixcy/article19481702.ece

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