Apparel maker S Kumar’s Nationwide (SKNL) announced that the PE investment arm of the Government of Singapore Investment Corp (GIC), will invest Rs9 billion ($209 million) to take a 25.4% equity stake in its wholly-owned unlisted subsidiary, Reid & Taylor (India).

SKNL will hold 74.5% stake in Reid & Taylor after the conversion of warrants.

SKNL plans to invest Rs 2,000 crore in its holding company SKNL International, which will act as an acquisition vehicle. The unit will be established in the Netherlands. Reid & Taylor, a more than 100 year old brand that started in Scotland and later on acquired by S Kumars in 1997-1998, targets to open 341 stores by 2009-2010, sources said. Each store would have an average area of 1,700 sq ft. Nearly 80% of these stores will be its high-street exclusive outlets and the remaining will be in shopping malls, preferably in Mumbai and Delhi.  

GIC manages more than $100 billion in funds globally and will make the investment through a purchase of new shares and warrants. GIC will route the investment through an affiliate company, Indivest. The deal values 100% of Reid & Taylor (India) on an equity value basis at Rs35.4 billion.

S Kumars’ shares closed at Rs106.90 each yesterday on the NSE. NSE index, the Nifty, lost around 2% to close at 4,191 points.