House of Anita Dongre plans to buy back close to 40% stake from General Atlantic

Fashion business House of Anita Dongre plans to buy back close to a 40% stake in its company from US based private equity firm General Atlantic around nine years after the initial acquisition.

General Atlantic had invested close to Rs 150 crore in House of Anita Dongre in 2015 to acquire a 23% stake in the business then later increased that to almost 38%, ET Bureau reported. The remaining stake in the business is held by the Dongre family.
 
“There is continued uncertainty over recovery in revenue and earnings in the coming quarters due to weak demand growth outlook and reduction in Anita Dongre’s scale of operations,” announced business ratings agency Icra in its report on House of Anita Dongre in January this year, the Economic Times reported. The stake buy back plan comes as the business has tightened its control on inventory management and is focusing on improving its profitability to meet its debt repayment obligations.
 
The business closed down 36 exclusive brand outlets in the first half of the 2024 financial year, according to Icra’s report. House of Anita Dongre also ceased operations for three of its labels: And Girl, Global Desi Girl, and Itse
 
Designer Anita Dongre founded House of Anita Dongre in 1995 with Meena Sehra and Mukesh Sawlani then launched the labels And and Global Desi in 1999 and 2009 respectively. The business is known for its modern take on Indian ethnic wear and its eclectic style.