Fabindia Ltd., one of the country’s leading retailers selling ethnic wear and lifestyle products, has submitted draft papers with market regulator SEBI with the intention of launching its IPO in the year 2022. Some sources directly aware of the matter have given this information to Moneycontrol. Some big names like Aziz Prem ji’s investment firm, Premji Invest and Nandan Nilekani have invested in Fab India.
With this, Fabindia now joins the list of apparel brands with investments from private equity firms that are planning to get listed on the Indian stock market in the next few months.
A source said, “FabIndia has submitted draft papers with SEBI. This IPO will be a mix of primary and secondary shares, with a major chunk of offer-for-sale (OFS). Through this, the company will be offering some of its investors. Will give an opportunity to exit by selling stake.”
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At the same time, another source said that the company will issue fresh shares worth about Rs 500 crore under the IPO and will bring an offer-for-sale of 25,050,500 equity shares. Under this offer-for-sale, the promoter group of the company, Premji Invest, Bajaj Holdings & Investments Limited, Nilekani family, Kotak India Advantage Fund etc. will sell their stake.
Sources said ICICI Securities, Credit Suisse, JP Morgan, Nomura, Equirus Capital and SBI Capital have been appointed as investment bankers for the IPO. AZB & Partners and Shardul Amarchand Mangaldas have been appointed as legal advisors.
Competition among fashion brands to launch IPO
Earlier on January 10, Moneycontrol had first reported the news that Biba Apparels has shortlisted some advisors for its proposed offer. Biba Apparels is a leading fashion brand offering ethnic wear for women. It has investments from private equity firms like Warburg Pincus and Faering Capital. The company wants to raise Rs 1,500 crore to Rs 2,000 crore through the Biba Apparels IPO.
Talking about other companies associated with the fashion segment, Manyavar brand owner Vedanta Fashion (Kedara Capital has investment in it) is also preparing for its IPO.
Recently, GoColors, which was invested by Sequoia Capital, saw a great listing in the stock markets. GoColors had raised Rs 1,014 crore from its IPO and entered the stock market last month with a staggering 90 per cent listing gain.
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