Fabindia Ltd IPO

Last Updated: 10 October 2023 5:33 PM by 5Paisa

Azim Premji backed lifestyle retail brand, FabIndia, plans to raise up to ₹4,000 crore through an initial public offer. The offer comprises of a fresh issue of shares worth up to ₹500 crore and an Offer For Sale (OFS) of up to 2,50,50,543 shares.

The issue has a novel approach as the two promoters -- Bimla Nanda Bissell and Madhukar Khera -- intend to transfer 400,000 shares and 375,080 shares, respectively, to the artisans and farmers engaged with the company or its subsidiaries to reward express gratitude towards them
FabIndia is considering seeking a valuation of about $2 billion.

ICICI Securities Ltd, Credit Suisse Securities (India) Pvt Ltd, JP Morgan India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets Ltd and Equirus Capital Pvt Ltd are the lead managers of the issue.

Objective of the Issue

The proceeds from the fresh issue of shares will be utilised for 
1. voluntary redemption of the company's NCDs (Non-Convertible Debentures), pre-payment or scheduled re-payment of a portion of certain outstanding borrowings 
2. general corporate purposes

FabIndia is a 6-decade old lifestyle platform focused on authentic, sustainable and Indian traditional lifestyle products. Its brands, ‘Fabindia’ and ‘Organic India’ are well recognized brands in India, with focus on the core principles of “Celebrating India” and “Healthy Conscious Living”, respectively. FabIndia offers a diverse portfolio of lifestyle products to across apparel and accessories, home and lifestyle, personal care and organic food categories.

Fabindia has an omnichannel experience with 311 stores across 118 cities in the country and 14 international stores and 74 Organic India stores and a network of retail touchpoints for Organic India (including general trade stores, modern trade stores and chemists). The company sources its products from villages of India and showcases handloom textiles and furniture to the world. The company relies on a purpose-driven approach, curated product portfolio and engagement with the supplier, contract manufacturer and customer communities. The company’s business model is framed after considering the interests of the artisans (that it engages with through the contract manufacturers) and farmers as integral part of it. It currently connects more than 55,000 rural producers to the urban markets. This acts as a differentiator factor for the brand and its products. The company also runs its own school with nearly 500 students.

It also offers healthy dining with regionally inspired foods and beverages through its subsidiary, FabCafe and holds a 68.46% stake in FabCafe.