FabIndia Eyes For IPO With An Aim For $2 Billion Value

• ByStartupStory     |    June 30, 2021

FabIndia, the retailer of ethnic brands, plans to go public as early as the end of this year, and they are targeting to reach Rs. 3000 crore. Fabindia is already in the process of hiring bankers for the initial public offering (IPO) and it is expected to value the company at around $1.5-2 billion, sources close to the matter reveal.. This share sale targets more at giving exit to investors, including private equity firm PremjiInvest, than raising funds for the company. The IPO will likely see the full exit of PremjiInvest, which owns nearly 25% of the company, said one of the two people cited above. “The company doesn’t need immediate cash, so the IPO is intended to facilitate exits for early backers,” this person said. PE firm Lighthouse Funds is the other significant investor in the company.  Fabindia is now in the list along with other top companies, who are trying to tap into public markets amid a record stocks rally in India and booming demand for most IPOs. 

Along with FabIndia, several other companies have also lined up to launch public offerings by the end of this year, or early next year, seeking to exploit this demand momentum.Several large companies, including fintech giant Paytm and e-commerce firm Flipkart, owned by Walmart Inc., are preparing for an IPO in India or overseas. E-pharmacy unicorn PharmEasy is likely to go for an IPO locally. Fabindia has 311 stores across 118 cities in India and 14 stores overseas. It sells apparel, home furnishings, furniture, gifts, jewellery, organic food and personal care products, among other items. Fabindia competes with brands such as Biba, Good Earth, W and Global Desi in the ethnic wear segment. In the personal care segment, its competitors include Biotique and Forest Essentials. Fabindia first grabbed the attention of private equity investors in 2007. That year, New York-based Wolfensohn Capital Partners invested $11.2 million for a 6.45% stake, valuing the company at $180.6 million, according to VCCEdge. 

Follow Startup Story