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FabIndia files DRHP with Sebi for IPO

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Ethnic-wear model Fabindia on Saturday has filed prospectus with the market regulators for an preliminary public providing (IPO).

“The provide includes a contemporary subject of as much as Rs 500 crore and a proposal for sale of 25,050,543 fairness shares by present traders/ shareholders,” in line with the draft pink herring prospectus (DRHP) filed with the market regulators on Saturday.

The New Delhi-based retailer has investments from Azim Premji’s agency PremjiInvest.

The corporate has submitted its DRHP to boost money from the markets at a valuation of greater than Rs 20,000 crore, one particular person acquainted with the plans stated. A Fabindia spokesperson declined to remark.

ICICI Securities, Credit score Suisse Securities (India), J.P. Morgan India, Nomura Monetary Advisory and Securities (India), SBI Capital Markets and Equirus Capital are the guide operating lead managers to the difficulty.

The promoting shareholders aside from promoters Bissell relations additionally embody PremjiInvest, Bajaj Holdings and Kotak India Benefit Fund amongst different traders.

The six-decade-old Fabindia runs greater than 300 Fabindia-branded shops and greater than 70 Natural India shops nationwide and the New Delhi-based retailer sources merchandise from over 2,200 farmers immediately and offers with over 10,300 farmers by way of their associates.

“With the intention to reward and specific gratitude to sure artisans and farmers engaged with the corporate or its subsidiaries, sure of Fabindia’s promoters, particularly, Bimla Nanda Bissell and Madhukar Khera, pursuant to their letters every dated January 14, 2022, respectively intend to switch 400,000 fairness shares and 375,080 fairness shares,” in line with the corporate’s DRHP.

Fabindia is the newest amongst a number of shops together with GoColors and Biba which have both tapped the markets or concentrating on their IPOs later this yr.

In November, Go Vogue (India) Ltd’s, that owns girls’s bottom-wear model Go Colours, IPO was oversubscribed 135 instances. Go Vogue listed at 90% premium to its subject worth. Fabindia’s rival Biba, that counts Warburg Pincus and Faering Capital amongst its traders, can be planning for an IPO later this yr, ET had reported.

Fabindia’s submitting for an IPO comes at a time when retailers are reeling below low gross sales and dwindling footfalls in shops amid a raging third wave of Covid-19 nationwide.

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