FabIndia plans to raise up to Rs 1,200 crore
Ethnic wear and lifestyle retailer FabIndia and a number of its private equity investors plan to raise between Rs 1,100 crore and Rs 1,200 crore at a valuation of between Rs 11,000 crore and Rs 12,000 crore. The funds will be raised by selling shares in the business.
“FabIndia is working with ICICI Securities and JPMorgan to raise funds from new investors as the company’s IPO plans have been pushed back due to the volatility in stock markets,” a source told ET Bureau. “This will largely be a secondary sale of shares by existing investors of the company. Capital raised by the company will be used for repaying certain debt and for working capital needs.”
Although FabIndia now has no set date for an IPO, the business remains open to pursuing one should market conditions and its need for growth capital. FabIndia had filed its draft prospectus for the IPO with a view to raise up to Rs 4,000 crore and planned to mainly raise the funds through a secondary share sale.
In its upcoming fundraising round, shareholders including PremjiInvest and Lighthouse Funds are expected to sell shares, the Economic Times reported. FabIndia has reported strong interest in the business from investors, especially those focused on sustainability as the business uses a number of eco-friendly manufacturing practices.
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