Fabindia IPO

Fabindia, an Indian chain store retailing garments, furnishings, fabrics, and ethnic products handmade by craftspeople across rural India is all set for its IPO.

Fabindia backed by billionaire Azim Premji’s Premji Invest has submitted plans for an initial public offering (IPO) in Mumbai and is expected to generate up to $500 million and aim for a valuation of roughly $2 billion.

The offer consists of an OFS of up to 2,50,50,543 shares and a new issuance of up to Rs. 500 crores.

About Fabindia

Fabindia was established in 1960 by John Bissell as an exporter of home furnishings to promote the numerous craft traditions of India. Fabindia is now one of the biggest private marketplaces for goods made from traditional crafts and expertise, having a presence throughout India. The company offers products promoting authentic and sustainable Indian lifestyles.

Customers may choose from a wide range of lifestyle goods in the home and lifestyle, apparel and accessories, personal care, and organic food categories. The apparel brand has its presence pan-India and owns 280 stores in 95 cities and presently operates stores in overseas markets such as Singapore, the UAE, the US, Malaysia, and Mauritius. The products are also available on all leading e-commerce websites.

Fabindia IPO Objectives

  1. Voluntary redemption of the company’s Non-Convertible Debentures (NCDs).
  2. To pay a part of certain outstanding borrowings on time or in advance.
  3. General corporate purposes.

Why must you invest in the Fabindia IPO?

The top reasons to invest in Fabindia IPO are

  • It is a leading consumer lifestyle portal emphasising authentic handmade and organic goods.
  • Products from Fabindia are offered for sale through various retail outlets, online stores, exhibitions, and exports.

The financial summary of Fabindia is as follows:

Rs. in Crores FY 19 FY 20 FY 21
Revenues 14,743.07 15,080.47 10,596.43
EBITDA 3,504.20 2,723.83 1,006.47
EBITDA Margin (%) 23.77% 18.06% 9.50%
Profit After Tax 872.71 341.47 -1,156.34
EPS 5.77 2.88 -7.45

How to apply for the Fabindia IPO?

To apply for the Fabindia IPO, one must have a trading and a Demat account.

Once the investor has both accounts, they can follow the below steps:

  1. Log in to your BFSL account and select IPOs.
  2. Choose the Fabindia IPO from the list of active IPOs.
  3. Specify the number of lots and the price you are interested in.
  4. Type in your UPI ID and press "Submit".
  5. You will receive a notification mandating money blocking in your UPI app.
  6. Accept the mandate request, and the funds will be blocked.

Fabindia IPO’s Pros and Cons

Pros Cons
In comparison to its rivals, Fabindia has higher EBITDA margins. Backward integration and an effective store structure are the driving factors in this. The rise of online retailers might hurt the company’s operations, financial situation, and business and may put pricing pressure.
Between Fiscal 2022 and Fiscal 2026, the branded ethnic apparel category is anticipated to expand at a faster pace of around 15.8% annually, driven by the growing share of the branded sector in the ethnic apparel market as a whole. Company has been and may still be negatively impacted by the economic crisis since it depends on consumers’ discretionary spending.

Get Free* Demat Account


By continuing, I confirm that I have read and agree to the Terms & Conditions and Privacy Policy.

FAQs on Fabindia IPO

The offer consists of an offer for the sale of up to 2,50,50,543 shares and a new issuance of up to Rs. 500 crores.

The date of allotment has not yet been decided.

The lot size of Fabindia’s IPO has not yet been decided.

Fabindia IPO date and Fabindia IPO price have not yet been finalized.

Retail investors must submit an application for at least one lot.

After the last day of the subscription, the listing procedure takes approx 10 days to complete.

After the allotment of the shares, they will be credited to your Demat account.

Yes, you must approve the UPI mandate immediately.

NRIs may apply for an IPO using the BFSL App if their bank accepts NRE/NRO accounts.

John Bissell is the founder of Fabindia.

Disclaimer: Investments in securities markets are subject to market risks, read all the related documents carefully before investing. No need to issue cheques by investors while subscribing to IPO. No worries for refund as the money remains in investors account. BFSL is not providing any research or investment advice and should not be construed as solicitation. Investor’s discretion is required before investing by their own informed choice or after consulting financial advisors. Reg Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035. Corp. Office : Bajaj Financial Securities Ltd,1st Floor, Mantri IT Park, Tower B, Unit No 9, Viman Nagar, Pune, Maharashtra 411014.. SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | NSE Cash/F&O (Member ID: 90177) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403. Website: https://www.bajajfinservsecurities.in/ Online Trading & Stock Broking in India | Bajaj Financial Securities Limited Bajaj Financial Securities - Open a Trading and Demat account and start investing, saving up to 99%** on brokerage charges.

*IPO Financing is done through Bajaj Finance Limited. Bajaj Finance Limited (BFL or Lender) reserves the sole right to decide participation in any IPO and financing to the client shall be subject to credit assessment done by the lender. Also, BFL shall have full rights to decide the commercial terms for IPO and final application and financing shall be subject to all requirements being met by the client in a timely manner including documentation, account setup and payment of required Interest and Margin. Bajaj Finance Limited also reserves the exclusive rights to change any of the above-mentioned terms and conditions without prior notice to clients. UPI is mandatory to bid in all IPOs through our platform. As per exchange guidelines, all the UPI mandates will only be accepted till 5:00 PM on IPO closure day.

Data Source - DRHP

© Bajaj Financial Securities Ltd