Advent, Partners Group in race to buy stake in Dixcy

PE funds Advent International and Partners Group are in separate talks to buy a minority stake in underwear brand Dixcy Scott, two people familiar with the development said.

Dixcy Textiles Pvt Ltd, the owner of the brand, plans to raise about $80 million (₹500 crore) from PE funds at a valuation of ₹3,000-3,400 crore, the people cited above said, requesting anonymity CHK. Avendus Capital Pvt. Ltd has been hired by Dixcy Textiles to find an investor.

Initially a handful of PE funds were in discussions and Advent and Partners are in advanced discussions with the management, said one of the two people cited above. Dixcy Textiles will dilute 15-20% in the company, the second person said.

Dixcy, a closely held family business, is owned by managing director Prem Prakash Sikka and his family. Founded in 1982, Dixcy Textiles (formerly known as Prem Hosiery) makes men and women’s apparel, T-shirts, pyjamas and underwear. The underwear business accounts for about 90% of Dixcy’s sales.

Emails sent to Rahul Sikka, director of Dixcy Textiles, went unanswered. Spokespersons for Partners Group, Advent International and Avendus Capital declined to comment.