NEW DELHI: Ethnic apparel and lifestyle retailer Fabindia hopes to raise up to $ 1 billion from its planned initial public offering (IPO).
Headquartered in New Delhi, the company is likely to have discussions with several investment banks including SBI Capital Markets, ICICI Securities and JP Morgan to manage its IPO, said three people familiar with the development.
As one of the youngest players to bet on the rising investor sentiment that has conquered the primary and secondary markets, the company, which competes with market leaders such as Khadi and Village Industries Commission (KVIC), among others, can file its paper drafts with the market regulator Sebi in a couple of months.
Fabindia is expected to sell a stake in the initial public offering valued at approximately $ 2 billion. Existing stakeholders are expected to sell part of the company. In addition to Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani, Premji Invest are among others involved in the company.
In 2016, Premji Invest bought around 8% of the shares in Fabindia from L Capital, the private equity arm of luxury goods company Louis Vuitton Moet Hennessy (LVMH) for around Rs.360 billion and valued the company at around Rs.4,500 billion.
When contacted, a Fabindia spokesperson said, “The company will from time to time consider various capital-based options. We also seek advice from our bankers. At the right time, we discuss any plans with the Board of Directors and let us be guided by their decision. We have nothing more to comment on at the moment. ”
However, a senior executive told TOI that William Bissell, chairman of Fabindia, is leading the exercise. “The IPO is something that Bissell is following very closely himself,” said the person.
With more than three dozen companies taking in Rs. 60,000 billion from the primary market so far, development comes at a time when Fabindia is looking to rapidly expand its operations across India.