BIBA Fashion IPO GMP Details
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Biba Fashion, backed by Warburg Pincus and Faering Capital, stands as one of the leading lifestyle brands in the women’s Indian wear market in India, holding a significant market share. The flagship brand, BIBA, was launched in 1986.
The company is actively involved in developing, designing, sourcing, marketing, and selling an extensive range of Indian wear for women and girls under various brands, catering to diverse Indian wear requirements. Additionally, Biba Fashion offers a diverse product range, including jewelry, footwear, wallets, and fragrances.
Initially, the company primarily focused on the Indian market but has been gradually expanding its global presence. Presently, Biba Fashion has established its footprint in Canada, Nepal, and the UAE, and it plans to further extend its reach to the USA and Australia by the end of the first quarter of FY23.
Biba Fashion also excels in its online presence, operating through its own websites and leveraging third-party marketplaces such as Myntra, Amazon, Flipkart, Nykaa, and Tata Cliq. Its digital-oriented business model gives the company a competitive advantage over its peers. On the physical front, Biba Fashion boasts an extensive network of outlets, including 427 Exclusive Brand Outlets (EBOs) comprising 308 BIBA-branded outlets and 119 Rangriti-branded outlets, spread across 27 states and 160 cities in India. Moreover, it operates 930 Large Format Stores (LFSs) across 29 states and 267 cities in India and 30 Multi-Brand Outlets (MBOs). These EBOs are strategically located nationwide in prominent high streets, malls, residential areas in major metros, large cities, as well as tier II and tier III cities, including airport locations.
The comprehensive product portfolio encompasses offerings from flagship brand Biba, Rangriti, BIBA by Rohit Bal, BIBA Girls, and its first fragrance under the beauty brand, Spelle. This diverse portfolio allows Biba Fashion to cater to a wide range of customer preferences and strengthen its position in the Indian women’s wear market.
Objectives of the BIBA IPO
The net proceeds from the fresh Issue will be used towards:
- Funding the repayment and/or prepayment of certain borrowings availed by the company, estimated to be ₹70 crore.
- Utilizing the remaining net proceeds for general corporate purposes.
BIBA Fashions IPO details
Well-known ethnic wear brand, Biba Fashion, is preparing to launch an IPO and has submitted its preliminary papers to SEBI (Securities and Exchange Board of India). The IPO will consist of issuing equity shares worth Rs 90 crores, along with an Offer For Sale (OFS) of 2.77 crore equity shares by the promoter and existing investors.
The promoter, Meena Bindra, plans to offload up to 37.52 lakh equity shares, while private equity investors, Highdell Investment (backed by Warburg Pincus) and Faering Capital India Evolving Fund, intend to sell up to 1.84 crore and 55.86 lakh equity shares, respectively.
The book running lead managers for the IPO include JM Financial, Ambit, Equirus Capital, DAM Capital Advisors, and HSBC Securities and Capital Markets (India).
With this IPO, Biba Fashion aims to raise funds for its expansion and growth plans, providing investors with an opportunity to be part of the company’s future journey in the ethnic wear market.
BIBA Fashions Company Financial Report
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Revenue | 525.8 | 757.2 | 729.4 |
EBITDA | 62.3 | 135.3 | 129.7 |
PAT | 57.6 | -79.9 | -79.1 |
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Total Assets | 832.5 | 931.5 | 830.5 |
Share Capital | 75.7 | 75.7 | 75.7 |
Total Borrowings | 109.8 | 144.2 | 103.4 |
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Net cash generated from / (used in) operating activities | 60.85 | 75.97 | 110.14 |
Net cash from / (used in) investing activities | -11.05 | -29.88 | -28.87 |
Net cash flow from / (used in) financing activities | -48.07 | -50.64 | -80.16 |
Net increase (decrease) in cash and cash equivalents | 1.73 | 4.54 | 1.11 |
Peer Comparison
Name of the Company | Total Income (in Rs. crores) | Basic EPS | NAV Rs. per share | PE | RoNW% |
---|---|---|---|---|---|
BIBA Fashion Limited | 569.2 | -0.96 | 25.28 | NA | -3.74% |
TCNS Clothing Company Limited | 684.5 | -8.85 | 99.47 | NA | -9.21% |
Trent Limited | 2794.6 | -4.11 | 65.07 | NA | -6.32% |
Go Fashion (India) Limited | 282.3 | -0.68 | 94.31 | NA | -1.25% |
Vedant Fashions Limited 625.0 | 625.0 | 5.36 | 44.0 | 188.6 | 12.18% |
Aditya Birla Fashion and Retail Ltd | 5322.3 | -8.23 | 28.2 | NA | 12.18% |
BIBA Fashions IPO Registrar
Name: Link Intime India Private Limited
Phone number: +91 022 4918 6200
Email ID: biba.ipo@linkintime.in
BIBA Fashions IPO Prospectus
To gain further insights into the company, review the documents submitted by the company during the filing process.
BIBA IPO Key Points
Strengths:
- Leading market position and strong brand equity across a diverse consumer base throughout the value chain.
- Diversified pan-India multichannel distribution with a robust presence in both offline and online channels.
- Significant investments in digital capabilities, resulting in strong online leadership across marketplaces and company-owned websites.
- Possesses strong in-house design and tech-first supply chain capabilities, ensuring the delivery of innovative and high-quality products.
- Capital-efficient and scalable retail model, well-positioned to benefit from the industry’s robust growth driven by secular tailwinds and the increasing shift towards organized retail and online penetration.
- Led by a professional, founder-driven management team with extensive industry expertise and a successful track record. Additionally, backed by renowned private equity investors.
Risks:
- Highly dependent on women’s Indian wear apparel, making the business vulnerable to fluctuations in demand and changing consumer preferences.
- Business prospects are closely tied to the performance of key brands, and any decline in sales or failure to grow sales could have adverse effects on the business.
- Uncertainty regarding the successful launch of new products.
- Reliance on outsourcing a substantial portion of production processes to third-party entities without exclusive arrangements.
- The potential challenge of identifying and retaining skilled third-party suppliers, vendors, and manufacturers for various production or procurement processes.
BIBA Fashions IPO FAQs
What is the price band of the IPO?
The price band for the BIBA IPO ranges from Rs. 610 to Rs. 643 per share.
When does the Biba Fashion issue open and close?
The BIBA IPO opens on May 24, 2022, and closes on May 26, 2022.
What is the size of the Biba Fashion IPO issue?
The IPO consists of a fresh issue of equity shares aggregating to Rs 627 crore and an offer-for-sale (OFS) of up to 28.2 lakh equity shares.
What is the allotment date of Biba Fashion IPO?
The allotment date for the IPO is May 31, 2022.
What is the Biba Fashion IPO listing date?
The Biba Fashion IPO listing date is June 3, 2022.
What is the lot size and investment required for the Biba Fashion IPO?
The Biba Fashion Limited IPO lot size is 23 shares. A retail investor can apply for a minimum of 1 lot (23 shares or Rs. 14,766) and a maximum of up to 13 lots (299 shares or Rs. 191,958).
What is the objective of the issue?
The proceeds from the issue will be used in the following manner: a. Rs. 136 crore for funding the capital expenditure requirements for the Greenfield project. b. Rs. 211.4 crore for repaying or prepaying debt availed by the company. c. Rs. 165 crore to fund the working capital expenditure requirements of the company.
How to apply for the Biba Fashion IPO?
To apply for the IPO, follow the steps given below:
a. Login to your online platform and select the issue in the current IPO section.
b. Enter the number of lots and price at which you wish to apply.
c. Enter your UPI ID and click on submit. Your bid will be placed with the exchange. d. You will receive a mandate notification to block funds in your UPI app
Who are the promoters/key personnels of Biba Fashion?
Biba Fashion is promoted by Ashwin Jayantilal Desai, Purnima Ashwin Desai, Rohan Ashwin Desai, Dr. Aman Ashvin Desai, AJD Family Trust, PAD Family Trust, RAD Family Trust, AAD Family Trust, and AAD Family Trust.
Who are the book runners for Biba Fashion IPO?
HDFC Bank Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue.