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Fabindia has decided to withdraw its proposed IPO, citing unfavourable market conditions. The company was reportedly looking to raise ₹4000 crore through the proposed public offering.
It had a filed DRHP with SEBI last year for a fresh issue of shares up to ₹500 crore and an offer for sale for up to 25,050,543 equity shares.
“Fabindia withdrew its DRHP for a public listing, the validity of which was to end in April 2023. The decision to withdraw was taken as the current market conditions were not seen to be conducive for a listing of our size,” the company said in a statement.
Also read: Fabindia eyes global expansion with new product portfolio
The retailer said this will allow it to explore other options for liquidity. It also added that it may reconsider filing an IPO in the future depending on its need for growth capital and prevailing market conditions.
Fabindia sells apparel and accessories, home and lifestyle products, personal care, and organic food products.
“We strongly believe that the Indian Consumer story is going to be the engine that drives the world economy. We have seen record sales this year, with a 40 per cent year-on-year growth in our business. This is our highest growth ever,” the statement added.
Also read: Apparel sector to contribute significantly in taking exports to $1-lakh crore by 2030: AEPC
It also stated that several leading global ESG-focused funds have expressed keenness to invest in the company. “During roadshows last year too, we received a very positive response from global institutional investors, especially those focused on sustainability,” it added.
As of September 30, 2021, Fabindia has 309 retail stores in India. This included 28 owned experience centres, 185 company-owned and company-operated stores, and 96 franchisee-owned and franchisee-operated stores, according to the DRHP. It also operates 74 Organic India stores.
In recent times, a slew of companies withdrew withdrawn their proposed public offering due to various issues, including volatile market conditions.
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