Home Big Grid Fabindia rallying for IPO: Reports

Fabindia rallying for IPO: Reports

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Leading fashion and home products retailer Fabindia, which currently owns 311 retail stores across India and 14 stores overseas, is eyeing funds and big valuation through IPO. Fabindia Overseas Pvt. Ltd is known for its unique basket of ethnic apparel, furniture, organic food and personal care products and recently it has announced its plans to go public as early as the end of this year. The retailer does not have any immediate need for cash and is thus, targeting to raise about ₹3,000 crore through an Initial Public Offer (IPO).

The retailer is reportedly in the process of hiring bankers for the IPO, which is expected to value the company at around USD1.5-2 billion. The share sale is aimed more at offering exits to existing investors, including private equity firm PremjiInvest, than raising funds for the company, sources said. The IPO will likely see the full exit of PremjiInvest, which owns nearly 25% of the company, according to sources.