Fabindia plans to go public, eyes valuation of $2 bn

Fabindia plans to go public, eyes valuation of $2 billion

The company does not need immediate cash, therefore this IPO is primarily aimed at giving exits to some investors

Fabindia is one of the many companies lining up for the bourses by the end of the year. Credit: iStock Photo

Ethnic wear retailer Fabindia is planning to go public by the end of 2021, aiming to raise Rs 3,000 cr, sources told Hindustan Times.

The deal is expected to value the retailer at about $1.5-2 billion and it is hiring banks to handle the process, the sources said on condition of anonymity.

The company does not need immediate cash, sources told the publication. Therefore, the IPO is primarily aimed at giving exits to some investors including private equity firm PremjiInvest, which owns about 25 per cent stake in the company.

Fabindia is one of the many companies lining up for the bourses by the end of the year amid a record stocks rally in the country. Walmart-powered Flipkart and fintech major Paytm are planning for an IPO either in India or overseas.

The retailer runs 311 stores across India and 14 stores overseas where it sells ethnic apparel, furniture, organic food and personal care products, among other things. Its main competitors include Biba, W, Global Desi in the apparel segment.

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