Fabindia plans to raise up to $1 billion from IPO – Times of India

NEW DELHI: Ethnic wear and lifestyle retailer Fabindia is hoping to raise up to $1 billion from its proposed initial public offering (IPO).
The New Delhi-headquartered company is likely in talks with several investment banks, including SBI Capital Markets, ICICI Securities and JP Morgan, to manage its IPO, said three people familiar with the development.
As one of the latest players to bet on the soaring investor sentiment that have captured the primary and secondary markets, the company, which competes with market leaders such as Khadi and Village Industries Commission (KVIC), among several others, may file its draft papers with markets regulator Sebi in a few months.

Fabindia is expected to sell a stake in the IPO at a valuation of around $2 billion. Existing stakeholders are expected to sell partial stakes in the company. Apart from Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani, Premji Invest are among others that hold stakes in the company.
In 2016, Premji Invest bought around 8% stake in Fabindia from L Capital, the private equity arm of luxury goods conglomerate Louis Vuitton Moet Hennessy (LVMH) for around Rs 360 crore, valuing the company at about Rs 4,500 crore.
When contacted, a Fabindia spokesperson said, “The company considers various capital-related options from time to time. We also take advice from our bankers. At the right stage, we will discuss any plans with the board of directors and be guided by their decision. We have nothing further to comment on this subject at this stage.”
A senior executive, however, told TOI that William Bissell, chairman at Fabindia, is spearheading the exercise. “The IPO is something that Bissell himself is looking at very keenly,” said the person.
With more than three dozen companies raising Rs 60,000 crore from the primary market so far, the development comes at a time when Fabindia is looking to expand operations rapidly across India.