Fossil India is said to weigh IPO that could raise $400 million

Fossil Group Inc., the US-based luxury watchmaker, is considering an initial public offering of its Indian arm, according to people familiar with the matter, as the South Asian market for new listings heats up.

The company is in talks with bankers to raise about $300 million to $400 million by selling a stake of as much as 25% in Fossil India Pvt., the people said, asking not to be identified as the information is private.

Deliberations are ongoing so the size or timing of the offering could change, the people said. A Fossil Group spokesperson declined to comment.

The listing would join the growing number of multinational firms seeking to take their Indian units public amid rising investor demand. Hyundai Motor Co. raised $3.3 billion in a record-breaking debut in October last year and LG Electronics Inc. recently wrapped up a popular $1.3 billion IPO. Others that have listed or plan to list their Indian operations include Carraro SpA and Tenneco Group.