Fabindia files papers for 2022 listing, Premji Invest-backed firm joins apparel brand IPO party

AGS Transact Technologies IPO

Leading ethnic wear and lifestyle retailer Fabindia which is backed by marquee investors including Azim Premji’s investment arm Premji Invest & Nandan Nilekani, has filed draft papers with Sebi to launch an IPO in 2022, persons in the know told Moneycontrol. The move adds Fabindia to the growing list of apparel brands backed by private equity firms eyeing a public market debut.

“They have filed the draft documents with Sebi,” one of the persons above said, adding that the IPO is a combination of primary and secondary issuance of shares, with the majority portion being the OFS ( offer for sale) component, to facilitate partial exit for multiple investors.

A second person confirmed the filing with the regulator and said the fresh issue part is upto Rs 500 crores and the offer for sale is up to around 25,050, 500 equity shares. The selling shareholders include the promoter group,  Premji Invest, Bajaj Holdings and Investment Ltd, the Nilekani family, Kotak India Advantage Fund, and others.

The proceeds from the IPO will be used for voluntary redemption of NCDs issued by the firm, debt reduction, and general corporate purposes, a third person told Moneycontrol.

All the 3 persons above spoke to Moneycontrol on the condition of anonymity. Moneycontrol could not elicit an immediate comment from Fabindia or the advisors.

ICICI Securities, Credit Suisse, JP Morgan, Nomura, Equirus Capital & SBI Capital are the investment banks working on the issue. AZB & Partners and Shardul Amarchand Mangaldas are the counsels advising the firm and the bankers respectively.

On 10^th January, Moneycontrol was the first to report that Delhi-based Biba Apparels, which is backed by Warburg Pincus and Faering Capital, had shortlisted advisors for its proposed initial public offer.

Sequoia Capital-backed women’s bottom-wear brand Go Colours raised Rs 1,014 crores via its IPO and made a stellar debut on the bourses in November, listing at a 90 percent premium to its issue price. Others like Manyavar owner Vedant Fashions ( backed by Kedaara Capital) are also preparing for an IPO.

Fabindia has been around for more than six decades and is focused on sustainable and Indian traditional lifestyle products. It offers a diverse portfolio of lifestyle products across apparel and accessories, home and lifestyle, personal care and organic food categories.

The firm delivers an omnichannel experience with a pan-India network of 309 Fabindia stores and Experience Centers, 74 Organic India ( its brand focusing on organic food and supplements) stores and a network of retail touchpoints for  Organic India (including general trade stores, modern trade stores, and chemists), as of September 30, 2021, along with online platforms and apps.

(This is a breaking story and will be updated later with more details)