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Kishore Biyani-led Future Group is preparing to buy a 30% stake in online fashion retailer Koovs.com, according to a report by The Economic Times.
The move comes as a new attempt to crack the Indian e-commerce After the unsuccessful attempt of the company to buy Jabong.com in 2016.
The stake will be bought back by the group's subsidiary Future Lifestyle Fashion for about 140 billion rupees, which will make it the largest shareholder of the brand listed on the London Stock Exchange.
Koovs sells its private labels and fashion and lifestyle products.
"We love their positioning (Koovs) because they are very selective and we can bring synergies Online fashion has taken off in India and we think we can make Koov big and viable," Biyani told the newspaper.
"This gives us a platform to sell our other existing portfolio," he added.
Koovs will release Future Lifestyle's 5.78.76,600 new ordinary shares at a price of 10 pence per share, according to the report, 24.8% of the issued share capital would rise to 5,787,660 pounds sterling.
"The transaction will be in two phases and will also involve other investors who will make additional investments in the entity" with the development told the newspaper.
Koovs targets the 18-34 age group with selected fashion and lifestyle products from several international brands. About 40% of the company's sales come from its private brands. The company currently has an income of around Rs 200 crore, the report suggests.
A person familiar with the case told the newspaper that the company run by Kishore Biyani would use the proceeds of a recently concluded stake sale. The company sold 10% of LVMH Moet Hennessy, a Louis Vuitton-owned private equity fund, L Catterton Asia, for about Rs. 900 in May.
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