ICICI picks up stake in Mumbai developer

The Indian private equity firm has acquired a 15 percent stake in the textile and real estate development company Arrow Webtex.

ICICI Venture has acquired a 14.9 percent stake in Mumbai-based textile and real estate development firm Arrow Webtex. The value of the transaction, which was done through a preferential allotment, was not disclosed.

Arrow Webtex makes woven and printed labels and elastic tapes for clothing. In addition, it also has extensive operations in real estate development through its subsidiaries, particularly in the hospitality and gaming areas.

In February Arrow Webtex made another preferential allotment to Pacific Corporate Services, giving the firm an 8.8 percent equity stake in the company.

The largest stakeholder in Arrow Webtex is Zia Mody, a high-profile lawyer and the wife of Jaydev Mody, a real estate developer.

In 2006 ICICI launched a $500 million real estate fund.. The firm has since then expanded its strategy to buy and manage completed commercial and residential properties, and it has said it is planning a $2 billion real estate fund.

ICICI Venture was set up in 1987 and has $2 billion under management, including $550 million in a real estate fund. The firm also has a 50-50 joint venture with Tishman Speyer Properties called TSI Ventures, which was launched in 2005 to invest in Indian property.