Private equity major ChrysCapital is set to acquire Indian denim and casual wear brand Mufti in a deal estimated at slightly over Rs. 500 cr, people with direct knowledge of the matter said. ChrysCapital is in exclusive discussions with Credo Brands Marketing, the owner of Mufti, and is completing due diligence ahead of signing a definitive buyout deal. Mufti Founder Kamal Khushlani holds a 65 per cent stake in the parent company, leaving rest with a set of investors, mostly high net worth investors. Khushlani, along with some of the investors, is selling stakes in the company that will give ChrysCapital a controlling stake. The deal is estimated to value the company at about Rs. 750 cr JM Financial is advising on the transaction process. ChrysCapital declined to comment.

Khushlani founded Mufti in 1998 and it emerged popular in the following decade as several Bollywood stars were seen wearing the brand. Mufti hasn’t done well in the recent years due to lack of adequate brand support. ChrysCapital, the largest India-focused private equity investor, sees scope in strengthening the home-grown brand which fits with the country’s young consumers, who seek to blend western fashion with the Indian spirit.