Fabindia to raise up to $1 billion via IPO, appoints banker

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The ongoing bull run in the secondary markets saw a flurry of IPOs hitting Dalal Street. As a matter of fact, some 40 companies via the IPO route have so far raised Rs 74,298 crore in the current calendar year. That apart over 31 companies are at advanced stages of their IPO plans. The latest to join is ethnic wear retailer Fabindia Overseas that plans to raise around $1 billion through its maiden offer.

According to a report published by financial daily Mint, the company has hired investment banks ICICI Securities, SBI Capital Markets, JP Morgan, Credit Suisse and Nomura.

The company is expected to file the draft paper with market regulator Sebi by November reported the daily. It is expected to seek a valuation of about $2 billion and sell 25-30 per cent stake in the IPO.

The share sale will offer existing investors an opportunity to exit. PremjiInvest, one of the company’s investors, may sell a part or full of its stake in the company during the IPO. Other investors in the company include Lighthouse Funds, funds managed by Axis Alternative Asset Management and Kotak Securities. Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani are also shareholders.

Known for its unique basket of ethnic apparel, furniture, organic food and personal care products Fabindia is a leading fashion and home products retailer in India. A pan-India presence has made the company the largest private platform for products that derive from traditional crafts and knowledge. A large proportion of these are sourced from villages across India where the company works closely with the artisans, providing various inputs including design, quality control, access to finance and raw materials.