FabIndia GMP IPO Details
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In 1960, FabIndia began its journey as the Indian branch of the overseas company Fabindia Inc. Initially focused on exporting home furnishings products to markets like the US, Europe, and the Middle East, the company gradually expanded into the ethnic apparel space and emerged as an iconic brand.
Known for its collaboration with rural artisans such as weavers, craftsmen, and farmers through contract manufacturers, FabIndia has established a nationwide presence. It currently operates 309 Fabindia stores and experience centers across the country.
In addition to geographical expansion, FabIndia has diversified its product portfolio, offering a wide range of products including apparel, accessories, home and lifestyle goods, personal care items, and organic food. In 2013, the company acquired Organic India, a retailer of organic products, which operates 74 stores and also distributes its products through various retail channels.
Having firmly established itself in India, FabIndia now plans to launch the FabIndia Ltd IPO. The IPO will comprise a combination of an offer for sale and a fresh issue. The funds raised from the fresh issue will be utilized to reduce debt.
Objective of the Issue
The objective of the issue is to utilize the proceeds from the fresh issue of shares for the following purposes:
- Voluntary redemption of the company’s NCDs (Non-Convertible Debentures)
- Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings
- General corporate purposes
Fabindia IPO details
FabIndia, a lifestyle retail brand backed by Azim Premji, plans to raise up to ₹4,000 crore through an initial public offer (IPO). The IPO consists of a fresh issue of shares worth up to ₹500 crore and an Offer For Sale (OFS) of up to 2,50,50,543 shares.
In a unique approach, the two promoters, Bimla Nanda Bissell and Madhukar Khera, intend to transfer a portion of their shares to the artisans and farmers associated with the company or its subsidiaries, as a gesture of gratitude.
FabIndia is aiming for a valuation of approximately $2 billion. The lead managers for the IPO are ICICI Securities Ltd, Credit Suisse Securities (India) Pvt Ltd, JP Morgan India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets Ltd, and Equirus Capital Pvt Ltd.
Fabindia Ltd Company Financial Status
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Revenue | 1059.64 | 1508.05 | 1474.31 |
EBITDA | 69.62 | 257.45 | 316.31 |
PAT | -117.14 | 30.69 | 84.36 |
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Total Assets | 2103.00 | 2466.04 | 2130.85 |
Share Capital | 14.74 | 14.74 | 2.39 |
Total Borrowings | 289.21 | 433.17 | 206.65 |
Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
---|---|---|---|
Net cash generated from / (used in) operating activities | 125.15 | 230.17 | 195.31 |
Net cash from / (used in) investing activities | -29.18 | -77.86 | -94.97 |
Net cash flow from / (used in) financing activities | -217.80 | -217.80 | -132.90 |
Net increase (decrease) in cash and cash equivalents | -121.83 | 162.22 | -32.56 |
Peer Comparison
Name of the company | Total Revenue (in Rs. crores) | Basic EPS | NAV Rs. per share | PE | RoNW % |
---|---|---|---|---|---|
FABINDIA LIMITED | 1,087.41 | -7.45 | 43.99 | NA | -16.65% |
Trent Limited | 2,794.56 | -4.11 | 65.07 | NA | -6.32% |
Aditya Birla Fashion and Retail | 5,322.32 | -8.23 | 28.2 | NA | -25.44% |
TCNS Clothing | 684.53 | -8.85 | 99.47 | NA | -9.21% |
Tata Consumer | 11,723.41 | 9.3 | 157.72 | 78.7 | 5.89% |
Dabur India | 9,886.94 | 9.58 | 43.36 | 59.04 | 22.10% |
Fabindia IPO Registrar
Name: Link Intime
Phone number: +91 022 4918 6200
Email ID: fabindia.ipo@linkintime.co.in
Fabindia IPO Prospectus
View documents submitted by company in filing to understand more details about them.
Fabindia IPO Key Points
Strengths:
- FabIndia is a leading consumer lifestyle platform that focuses on offering authentic craft-based and organic products.
- It is well-positioned to cater to the growing demand for high-quality Indian lifestyle and organic products.
- The company follows a sustainable-by-design business model that prioritizes the interests of its supplier community.
- FabIndia has an established sourcing base and a robust supply chain infrastructure.
- The company has an omni-channel presence, allowing customers to access its products through various channels.
Risks:
- There is a risk of not being able to maintain and enhance the value and reputation of the brand, as well as counter any negative publicity.
- Inability to anticipate and respond to changes in industry trends, particularly in fashion, and changing customer preferences in a timely and effective manner may lead to a decline in demand for the products.
- Procurement challenges such as the inability to acquire raw materials, finished products, and packaging material of the required quality and quantity at competitive prices may impact operations.
- The growth of online retailers could create pricing pressures, increase competition, and adversely affect the business.
- There is a risk associated with the company’s ability to grow and expand its business in domestic and international markets.
Fabindia IPO FAQs
How can I pre-apply for the FabIndia IPO?
Pre-applying for the FabIndia IPO is not available at the moment.
When does pre-apply for the FabIndia IPO open and how can I pay for it?
Pre-apply for the FabIndia IPO will open two days before the launch date. Once the IPO goes live, you will receive a UPI mandate to block the application amount and place your bid.
How can I apply for the FabIndia IPO?
You can apply for the FabIndia IPO on Upstox’s website and app when the IPO opens for subscription.
When does the FabIndia IPO open and close for the subscription?
The opening and closing dates for the FabIndia IPO have not been announced yet.
What is the lot size and minimum investment required for the FabIndia IPO?
The lot size and minimum investment details for the FabIndia IPO have not been announced yet.
What is the price band for the FabIndia IPO?
The price band for the FabIndia IPO is not available at the moment.
What is the size of the FabIndia IPO?
The size of the FabIndia IPO has not been announced yet.
How many bids can I place for the FabIndia IPO?
You can place up to three bids for a single application.
Can I place bids at different times during the IPO subscription period?
No, bids have to be placed all at once. If you want to add an additional bid, you would need to delete your application and re-apply.
When will FabIndia shares be credited to my demat account?
The date for crediting FabIndia shares to the demat account has not been announced yet.
On which exchanges will FabIndia shares list?
FabIndia shares will be listed on NSE and BSE.
When will FabIndia shares list on the exchanges?
The listing date for FabIndia shares has not been announced yet.