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Writer's pictureSanjana Ratkal

Fabindia plans for IPO later this year

Updated: Dec 8, 2022

Fabindia, a brand famous for its artistry and handloom designs in India, After 60 years since its inception is gearing up to float an IPO later this year.

Why it matters: Fabindia runs more than 309 Fabindia-branded outlets and more than 70 Organic India stores nationwide and the New Delhi-based retailer sources products from over 2,200 farmers directly and deals with over 10,300 farmers through their associates.

  • In order to reward certain artisans and farmers engaged with the company, it intends to transfer 775,080 equity shares.

What's happening: In 2022, Fabindia got SEBI's approval to float an IPO of ₹4,000 crores.

  • Going by the DRHP, the company plans to offer a fresh issue of value over ₹500 crores for existing shareholders and investors.

  • It competes with top brands like Manyavar, Reliance Trends, and BIBA.

By the numbers: The ethnic apparel market in India is expected to grow at a rate of approximately 10.2% per annum between FY2022-26 to reach ₹1,879 Billion by FY26.

  • In FY22 - The company narrowed its losses after sales rose 29% it posted revenues of 1,392 cr during the year with a net loss of ₹39 cr.

  • It posted a net loss of ₹117 cr on revenues of ₹1,081 cr in FY21, its worst performance in two decades.

Catch up quick: Fabindia is one of the iconic brands that has been around for 60 years. Besides the two years of the pandemic, it has been profitable as well and plans for IPO later this year after receiving SEBI's approval to float an IPO worth ₹4,000 crores.


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