David Di Pilla’s HMC Capital has taken a major stake in Baby Bunting after the country’s largest children’s products retailer’s shares slid following a profit warning.

HMC’s Capital Partners Fund 1 said it had a 10.3 per cent holding in Baby Bunting late on Friday, after hovering below the disclosure threshold for some time. Sources close to the transaction said HMC acquired just over 5 per cent last week.