Fabindia, a retailer of craft products and lifestyle items, is considering an initial public offering (IPO) of up to $ 1 billion, according to those in the know.
The company will from time to time consider various capital-related options and seek advice from 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 JPMorgan to manage its IPO, industry officials close to the development said.
Fabindia is expected to file its draft IPO documents with the Sebi Market Authority by the end of November, they added.
The company is expected to target a valuation of $ 2 billion and sell around 25 to 30 percent of the shares through the IPO.
Its existing shareholders, such as the private equity fund PremjiInvest from Azim Premji, can sell part of the shares in the company.
Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani are also shareholders in the company.
When contacted, a spokesman for the Fabindia Group said, “The company will from time to time consider various capital-based options. We also let our bankers advise us on their decision. We have nothing more to comment on at this point in time. “Founded in 1960, Fabindia sources its products primarily from villages that help create and maintain rural jobs in India and are reportedly being used by over 40,000 artisans in India made all over India.