Fabindia IPO: Ethnic wear retail store chain Fabindia is likely to file preliminary papers for its initial public offerings (IPO) with market regulator Securities and Exchange Board of India (SEBI) this week. CNBC-TV18 has given this information on Tuesday quoting sources.
The company will issue new shares worth 500 crores
Fabindia plans to raise Rs 4,000 crore from the IPO through issue of fresh equity shares and offer for sale (OFS). Sources said that in this, fresh issues of more than Rs 500 crore will be issued, while the value of OFS will be Rs 3,500 crore.
Expected valuation of 20,000 crores
Sources said Fabindia is expecting a valuation of Rs 20,000 crore through its new issue. CNBC-TV18 sent a query to Fabindia to confirm the development, but is yet to receive a response. The company will use the proceeds of the IPO for growth, expansion and expansion of its e-commerce business.
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A source told Livemint in December 2021 that Fabindia gets 10-15 per cent of its sales from its e-commerce business and expressed its desire to expand its online presence. Apart from this, it also has plans to open new stores to increase the footfall after the COVID-19 pandemic.
Many bigwigs have investments in Fabindia
According to earlier reports, investor PremjiInvest in FabIndia is expected to sell some of its stake in the company. The company is backed by several investors including Lighthouse Funds (a fund managed by Axis Alternative Asset Management), Kotak Securities, Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani.
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How many stores does the company have
Fabindia has 311 stores and 14 international stores in 118 cities across the country. The company sells apparel, home furnishing, furniture, gifts, jewellery, organic food and personal care products.
The company, founded in 1960 by John Bissell, procures a large number of its products from villages across the country and offers handloom textiles and furniture to the world. According to the company’s website, she connects more than 55,000 producers to urban markets and also runs her own school with around 500 students.
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