FabIndia to raise funds for debt repayment, working capital
24 March 2023, Mumbai
FabIndia, the ethnic wear and lifestyle retailer, along with its private equity investors, is planning to raise funds through a share sale.
The company is looking to raise between Rs 1,100 crore and Rs 1,200 crore at a valuation of Rs 11,000 crore to Rs 12,000 crore. The funds will be used to repay debt and for working capital needs. FabIndia had earlier filed its draft prospectus for an IPO but due to market volatility, the IPO plans have been pushed back.
The company is working to raise funds from new investors in a secondary sale of shares. Shareholders including PremjiInvest and Lighthouse Funds are expected to sell shares in the upcoming fundraising round. FabIndia has reported strong interest from investors, particularly those focused on sustainability, as the company uses eco-friendly manufacturing practices.
