Fabindia withdraws $482M IPO amid uncertain market conditions
Fabindia had planned to raise $482 million through an initial share sale. The fashion retailer joins a growing list of firms pulling back listing plans amid tough market conditions.
Premji Invest-backed apparel retailer has shelved its initial public offering (IPO) plans amid tough macroeconomic conditions. The company had planned to raise $482 million (~Rs 4,000 crore) via a fresh issue of shares worth Rs 500 crore and an offer of sale (OFS) of up to 2.5 lakh shares of existing stockholders.
"The decision to withdraw was taken as the current market conditions were not seen to be conducive for listing,” Fabindia said in a statement on Monday.
The company said the withdrawal will allow it to look at other options of liquidity and may reconsider filing for an IPO in the future, depending on the need for growth capital in the midst of the current market scenario.
"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% YoY growth in our business. This is our highest growth ever," a company spokesperson said.
Several leading global ESG-focused funds have expressed interest to invest in the company, it added without divulging details.
The 62-year-old retailer, known for its sustainable and traditional Indian wear, joins the likes of consumer electronics firm boAt and jewellery chain Joyalukkas that have scrapped public listing plans owing to uncertain market conditions. More recently, ecommerce firm Softbank-backed Snapdeal also withdrew IPO plans.
Fabindia's listed rivals—Vedant Fashion, Aditya Birla Fashion and Retail, and Arvind Fashion—are down 14-21% so far this year.
(The copy was updated with response from Fabindia.)
Edited by Kanishk Singh
