Lifestyle e-tailer Koovs is raising $37 million in funding from London’s AIM exchange by filing for an IPO, the company has reported.
Koovs was established in May 2010 and was taken over by the Nahata family which owns the Indian realty group Nahata. In September 2012, Silvergate Retail (now called Koovs Plc) that was founded by British businessmen Lord Waheed Alli and Robert Bready started supplying Koovs India with consultancy services.
Prior to the IPO, Koovs Plc held 49.9% of shares in Koovs India, while 38.4% was held by Anant Nahat. Lord Waheed Alli’s shareholding will come down to 19.6% after admission.
Post IPO, Koovs Plc will subscribe for majority shares (57.5%) of shares in Koovs India. Koovs India now operates as a wholesale trading entity that will supply branded and private fashion labels to Marble E-retail private limited. Marble e-retail will be the retailer through whom products from Koovs website is sold. Marble also now owns the Koovs e-commerce site.
The filing with the London Stock Exchange says that process was changed in order to “facilitate the subscription by Koovs plc into Koovs India following the IPO”. FDI in e-commerce is not permitted in India.
The combined business will have operations both in India and the UK. BlackRock fund managers and JPMorgan Asset Management company (UK) will also hold 7.1% shares each post IPO.