Fabindia Eyes $1 Bn IPO With New Investment Bankers

Latest Updated on 20 January 2023

Fabindia a very well brand for Ethnic Clothing and local Handicrafts is exploring an IPO to raise close to $1 billion or about Rs. 7,400 crores. The first public offering will include a new issue and an offer for sale. I-Sec, SBI Caps, JP Morgan, Credit Suisse, and Nomura Advisory are reportedly among the Investment Banks that Fabindia has already picked to lead and manage its tender offer.

The issue's specifics are not yet known but it is expected that Fabindia may consider valuing the company at $2 billion overall. Out of this, 25% of the shares or around $500 million may be offered for sale and another $500 million may come from a new issue giving a financial boost to the Business.

This will rank among the biggest problems in recent memory with a value of Rs. 7,400 crores. The only larger problem this year was Zomato which collected Rs. 9,375 crores through its tender offer in July. Nuvoco Vistas, which was valued at Rs. 5,000 crores was the other significant problem. Of course, there is the LIC IPO which is expected to be the biggest of them all at around Rs. 75,000 crore, as well as the Paytm IPO which will be close to Rs. 16,000 crores.

Fabindia's current equity investors include Premji Finvest the family office of Azim Premji well as Nandan and Rohini Nilekani. Premji Finvest's possible interest in a partial withdrawal from the OFS is all but certain but it's clear what the Nilekani family plans to do with its holding.

Over 40,000 artists and craftsmen offer their goods on Fabindia all over India. In India, they have a significant number of small stores through which the general public may purchase various ethnic goods. The new money will be used by Fabindia to increase the number of its stores. Across a total of 36 public issues IPOs have already raised close to Rs. 60,000 crores this year.

Last Updated on 13 September 2021

Going by the increased demand and value for IPO, Fabindia has emerged as the new contender in the league to gear up their initial sales by hiring over five top-rated investment bankers, the company is looking to reach up to $1 billion through primary offerings. Sources close to the company have indicated that Fabindia has hired investment bankers such as ICICI Securities, SBI Capital Markets, JP Morgan, Credit Suisse, and Nomura in order to get to the targeted IPO. After companies like Zomato, which has a record-breaking IPO this year, Fabindia too has enlisted themselves in the race via investment in the primary and secondary market since the record Sales look rather positively inclined. 

Fabindia is expected to file for draft papers with market regulator Sebi in the coming months and they seek a valuation of 2 billion and plan to a 25-30% share stake in IPO. Some of the popular names associated with the company’s share are Azim Premji’s private equity fund, PremjiInvest, which are expected to sell the partial stakes in the company. Another popular business tycoon, Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani are also shareholders.