Global private equity majors and large buyout funds are understood to be in advanced discussions with the promoters of Kurlon Ltd, to acquire a minority stake in the company. Kurlon Ltd is a Rs 750 crore group company of the Manipal Group has around 20 per cent market share in the Rs 4,000 crore branded mattresses business in India as reported by Business Standard.
Apax Private Equity which focuses on large transactions including taking management control is in advanced discussions for a Rs 200 crore investment. Investment bankers further add that Darby Private Equity, an arm of Franklin Templeton is also in discussions with Kurlon.
Kurlon is looking at raising approximately Rs 200 crore from the funding from which 5-15 per cent will go to the PE company. The amount that will come from PE route will be spent on Kur-lon’s mattress business towards increasing manufacturing and workforce capacity for the future growth of the company. Additionally Kurlon has also applied for bank loans to fund the capex requirement.