Fabindia, Ethnic wear brand IPO: Readies to file DRHP with SEBI ongoing week, as per sources
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19 January 2022, Mumbai:
Fabindia IPO: The company is likely to file the draft red herring prospectus (DRHP) for its IPO worth Rs 4,000 crore with markets regulator SEBI this week, sources have told CNBC-TV18.
Ethnic wear retail store chain Fabindia is likely to file preliminary papers with the markets regulator Securities and Exchange Board of India (SEBI) this week for its initial public offering (IPO), sources told CNBC-TV18 on Tuesday.
Fabindia IPO aims to raise over Rs 4,000 crore via a combination of fresh issue of equity shares and an offer for sale (OFS). While the fresh issue shall be worth more than Rs 500 crore, OFS of shares will amount to Rs 3,500 crore, the sources said.
KEY HIGHLIGHTS
- It is likely to file the draft red herring prospectus (DRHP) for its IPO
- IPO worth Rs 4,000 crore with markets regulator SEBI this week, say sources
- It aims to raise over Rs 4,000 crore via a combination of fresh issues of equity shares & an offer for sale (OFS)
- It has 311 stores in 118 cities Across Pan-India & 14 overseas stores
According to the people cited above, Fabindia is looking at a valuation of nearly Rs 20,000 crore via its fresh issue.
CNBC-TV18 has written to Fabindia to confirm the development and the company’s response is awaited.
The company will use the proceeds from the IPO for growth, expansion, and the scaling-up of its e-commerce business.
A source had told business daily Livemint in December 2021 that Fabindia receives 10-15 percent of its sales from its e-commerce
business and wishes to grow its online presence. Meanwhile, it also plans to add stores in view of the increased footfall after the COVID-19 pandemic.
As per earlier reports, PremjiInvest, an investor in Fabindia, is expected to sell a part of its stake in the company. The firm is backed by a battery of investors, including Lighthouse Funds (funds managed by Axis Alternative Asset Management), Kotak Securities, Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani.
Fabindia has 311 stores across 118 cities in the country and 14 international stores. The company sells garments, home furnishings, furniture, gifts, jewellery, organic food, and personal care products.
Established in 1960 by John Bissell, the company sources its products from villages of India and showcases handloom textiles and furniture to the world. According to the firm’s website, it currently connects more than 55,000 rural producers to the urban markets. The company also runs its own school with nearly 500 students.
cnbctv18.com (The news article has not been edited by DFU Publications staff)
