Fabindia Overseas Pvt. Ltd has hired five investment banks, namely ICICI Securities, SBI Capital Markets, JP Morgan, Credit Suisse and Nomura to launch an IPO valued at between $ 750 million and $ 1 billion, said two familiar people. with the daily development of The Mint.
The clothing and home products retailer will likely file its draft initial public offering (IPO) documents with the markets regulator by November, one of the two people said, Mint reports. In June, numerous reports were circulating expecting the company to explore an IPO at a valuation of $ 2 billion.
It is estimated that a 25-30% stake in the company will go public in a combination of primary and secondary stock sales, a source told the publication. It depends on the shareholder’s decisions to exit during the IPO or not, the size of the issue could be enough for as little as $ 500 million, the other source added, adding that the valuation IPO has not yet been decided.
Lighthouse Funds and PremjiInvest are the company’s investors, among them PremjiInvest is likely to share part of its own during the IPO. Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani also own shares.
In 2013, Fabindia entered into a partnership agreement with Organic India. With 327 stores in 118 cities in India and 14 international stores, Fabindia Overseas Private Limited is the country’s largest retail platform.
A spokesperson for Fabindia said the company had “considered various capital-related options from time to time.” In addition, said: “We also take the advice of our bankers. At the right time, we will discuss any project with the board and be guided by its decision. We have nothing further to comment on this topic at this point.
Fabindia Overseas sales amounted to 1,508 crore in fiscal 2020, an increase of 2.3% compared to 1,474 crore the previous year. However, net profit fell to 30 crore from 101 crore during the period under review, according to VCCEdge.
Fabindia’s financial data for fiscal year 21 has yet to be released, but sources told the publication it “may not be a meaningful metric for future growth.”
In the ethnic clothing segment, brands like Biba, Good Earth, W and Global Desi are fierce competition for the company, while in the personal care segment, Biotique and Forest Essentials pose an uphill battle.
In 2007, New York-based Wolfensohn Capital Partners invested $ 11.2 million for a 6.45% stake, estimating the valuation at $ 180.6 million, according to VCCEdge. In 2012, L Capital Asia and PremjiInvest paid $ 60.6 million for a primary brew as well as a secondary purchase. Wolfensohn took out Fabindia in this round.
In 2021, up to 38 companies made their public debut raising up to 60,000 crore, according to stock exchange data. Many are lined up for later this year.