New Delhi: Ethnic wear brand FabIndia has withdrawn its Rs 4,000 crore initial public offering (IPO), the company said in an official statement on Monday, citing rough market conditions.
“Two months ago, Fabindia withdrew its DRHP for a public listing, the validity of which was to end in April 2023,” said a FabIndia spokesperson adding that the decision to withdraw was taken as the current market conditions were not seen to be conducive for the listing of the company’s size.
“The withdrawal of the DRHP will allow Fabindia to explore other options of liquidity,” commented the spokesperson.
FabIndia filed its draft red herring prospectus (DRHP) with SEBI last year in January for a fresh issue of shares up to Rs 500 crore, and an offer for sale (OFS) of up to 2,50,50,543 shares.
Commenting on future plans, the company said that it may reconsider filing an IPO in the future, depending on its need for growth capital and prevailing market conditions, highlighting that several leading global ESG-focused funds have expressed interest to invest in the brand.
FabIndia becomes the latest company to shelve its IPO plans. Last week, jewellery retailer Joyalukkas withdrew its Rs 2,300 crore IPO. Before that, e-commerce platform Snapdeal, online pharmacy PharmEasy, and Aman Gupta-led consumer electronics startup Boat deferred their IPO listings.
FabIndia posted a 29 per cent growth in revenue to Rs 1,392 crore in the year ended March 2022. Its net loss was reduced to Rs 39 crore in the same period.
Commenting on its growth, the company spokesperson told ETRetail, “We have seen record sales this year, with a 40% YoY growth in our business. This is our highest growth ever.”
The retailer has a total of 309 FabIndia stores, 74 Organic India stores, and is present across general and modern trade stores.
FabIndia is focusing on reinventing its stores. Highlighting a ‘strong resurgence’ in brick-and-mortar shopping, the company said, “ …we are reinventing, repositioning and reenergizing our stores and portfolio of offerings by adding features like design studios, one-hour alterations, concierge services, etc. to make the physical shopping experience more enjoyable.”
The retailer is known for its authentic, sustainable, and Indian traditional lifestyle products.