FabIndia plans to raise up to Rs 1,200 crore
Ethnic and lifestyle clothing retailer FabIndia and some of its private equity investors plan to raise between Rs 1,100 crore and Rs 1,200 crore at a valuation between Rs 11,000 crore and Rs 12,000. The funds will be raised by selling shares in the business.
“FabIndia is working with ICICI Securities and JPMorgan to raise capital from new investors as the company’s IPO plan has been pushed back due to volatility in the stock market,” a source told the ET Bureau. “This will largely be a secondary sale of shares by existing investors of the company. The company’s raised capital will be used to pay off certain debts and for working capital needs.”
Although FabIndia has not set an IPO date yet, the business is poised to pursue a growing market condition and capital needs. FabIndia has submitted a draft prospectus for the IPO with the aim of raising up to Rs 4,000 crore and intends to raise funds mainly through a secondary share sale.
In the upcoming fundraising round, shareholders including PremjiInvest and Lighthouse Funds are expected to sell shares, The Economic Times reported. FabIndia reported that investors are very interested in the business, especially those who focus on sustainability because the business uses several environmentally friendly production methods.
Copyright © 2023 FashionNetwork.com All rights reserved.