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
- Voluntary redemption of the company’s Non-Convertible Debentures (NCDs).
- To pay a part of certain outstanding borrowings on time or in advance.
- 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:
- Log in to your BFSL account and select IPOs.
- Choose the Fabindia IPO from the list of active IPOs.
- Specify the number of lots and the price you are interested in.
- Type in your UPI ID and press "Submit".
- You will receive a notification mandating money blocking in your UPI app.
- 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. |