Fabindia plans to raise $1 billion through IPO
Fabindia, a retailer of artisanal products and lifestyle goods, is looking to raise up to $1 billion through an initial public offering (IPO), according to people aware of the development. The company said it considers various capital options from time to time and consults its bankers. However, it declined to confirm the development.
The company is believed to be in talks with several investment banks, including SBI Capital Markets, ICICI Securities and JP Morgan, to manage its IPO.
He said Fabindia is expected to submit the draft IPO document to the markets regulator Sebi by the end of November.
The company is expected to have a valuation of $2 billion and sell around 25-30 per cent stake through the IPO. Its existing shareholders, such as Azim Premji’s private equity fund PremjiInvest, may sell a partial stake in the company.
Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani are also shareholders of the company.
When contacted, a Fabindia Group spokesperson said, “The company considers various capital related options from time to time. We also consult our bankers. At the right level, we will discuss any plans with the board of directors. And will guide. His decision. We have nothing more to comment on at this stage.”
Established in 1960, Fabindia sources its products primarily from villages helping to provide and sustain rural employment in India. As per reports, they are currently produced by over 40,000 artisans and craftsmen across India.
.