Azim Premji, chairman of Bangalore-based software company Wipro Ltd, has acquired 1% stake in apparel manufacturer Koutons Retail India Ltd.

Ajay Mahajan, Koutons chief financial officer said, “The acquisition by Azim Premji was because of the fact that in the retail sector, Koutons, with the largest chain of stores, is growing very fast.”

The total number of outstanding shares of the company is 3,05,51,397 shares, out of which Premji acquired 2,96,402 shares, which is around 0.97% of the company’s total outstanding shares.

While commenting that the stake acquisition by Premji is not a new one for Koutons, Mahajan stated, “Some three-four months back Premji acquired around 1% stake in the company at the prevailing share price at that time.”

The shares of Koutons were trading in the range of Rs 960-1,006 on the BSE. The market capitalization of Koutons Retail India on April 23 was Rs 2,400 crore. The stake acquisition, at this level, would have cost Premji more than Rs 23 crore.

In 2005, Premji had acquired 3.76% in another textile firm, Himatsingka Seide Ltd. Premji had bought 800,000 shares of the silk yarn and fabrics maker at Rs 136 a share from Arsaig Partners Asia Pte. then.

Besides, he also invested $10 million (about Rs 400 crore) in Cicada Resorts, another Bangalore-based eco-tourism operator.

Koutons went public in October 2007, raising around Rs 110 crore. It has more than 1,100 stores across India, most of them are franchisees.