Fabindia, IPO, market conditions, plans shelved, ESG-companies, Sebi
According to Fabindia, several leading global ESG-focused funds have expressed keenness to invest in the company

Ethnic retailer Fabindia to file ₹4K Cr IPO by year-end

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Apparel retailer Fabindia plans to file draft documents for its initial public offering before December-end to raise ₹4,000 crore, a report has said.

Disclosing the news to a reputed news website, two people privy to the development said the company’s shareholders gave their nod for the IPO proposal at a general meeting on Saturday.

According to the sources, the ethnic retailer aims to raise at least ₹250 crore, which will go into expanding its retail stores and enhance its website.

The estimated worth of the IPO is likely to touch ₹3,800-₹4,000 crore, as many investors of the company will sell their stakes.

“Footfalls have increased, the mood is optimistic, and the company is poised for steady growth. Right now, the priority is to stabilise and review the performance of existing stores, but the company will also add stores,” a source told the news website.

“Currently, the e-commerce business contributes to 10-15 per cent of sales, and Fabindia is planning to enhance this,” the source added.

The company’s investors include PI Opportunities Fund, Bajaj Holdings and Investment Ltd, Axis New Opportunities, India 2020 Fund II Ltd, Kotak India Advantage Fund, Azim Premji’s private equity fund PremjiInvest and Infosys co-founder Nandan Nilekani and wife Rohini Nilekani among others, apart from farmers and artisans from different parts of the country.

Once launched, Fabindia’s IPO will be the biggest in the country while the company will be one of the few with a sturdy record on ESG (environment, social and governance).

“The company does not operate any factory of its own. Its business model is focused on sustainability by design, and it claims to have created a unique supply-side community with its model of partnering with over 50,000 artisans, weavers and craftsmen and over 2,200 farmers directly and almost 10,400 through associates. Many artisan and farmer families have been working with Fabindia for generations,” the report said quoting one of the sources.

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