Leading ethnicwear retailer Fabindia Overseas Pvt. Ltd. is planning to issue its initial public offering (IPO) by the end of this year. The company, having 311 stores across 118 cities in India and 14 stores overseas, is aiming to raise about Rs. 3,000 crore.
As per a report of The Hindustan Times, two people familiar with the matter said the retailer is in the process of hiring bankers for the IPO that is expected to value the company at around US $ 1.5-2 billion.
The share sale is aimed more at giving exits to investors, including private equity firm PremjiInvest, than raising funds for the company.
The IPO will likely see the full exit of PremjiInvest, which owns nearly 25 per cent of the company, said one of the two people cited above.
It is being said that the company doesn’t need immediate cash, so the IPO is intended to facilitate exits for early backers. Private equity firm Lighthouse Funds is the other significant investor in Fabindia.
Fabindia posted consolidated net sales of Rs. 1,508 crore in fiscal 2020, up from Rs. 1,474 crore a year earlier. Net profit, however, declined to Rs. 30 crore from Rs. 101 crore during the period under review, according to VCCEdge.
Source : https://in.apparelresources.com/