The New Delhi-headquartered company may be in talks with several investment banks, including SBI Capital Markets, ICICI Securities and JPMorgan, to manage its IPO, said three people familiar with the development.
As one of the latest players to bet on rising investor sentiment capturing the primary and secondary markets, the company competes with market leaders such as Khadi and Village Industries Commission (KVIC), among many others, may file its draft papers with the markets regulator SEBI in a few months.
Fabindia is expected to sell stake in the IPO at a valuation of around $2 billion. Existing stakeholders are expected to sell a partial stake in the company. Besides Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani, Premji Invest is among others who have a stake in the company.
In 2016, Premji Invest bought about 8% stake in Fabindia L Capital, the private equity arm of the luxury goods group, Louis Vuitton Moet Hennessy (LVMH) for around Rs 360 crore, valuing the company at around Rs 4,500 crore.
When contacted, a Fabindia spokesperson said, “The company considers various capital options from time to time. We also consult our bankers. At the right stage, we will discuss any plans with the board of directors and be guided by their decision. We have nothing more to comment on at this stage.”
However, a senior executive told TOI that William BissellThe chairman of Fabindia is leading the exercise. “The IPO is something that Bissell himself is very keenly looking at,” the person said.
With over three dozen companies having raised Rs 60,000 crore from the primary market so far, the development comes at a time when FabIndia is looking to rapidly expand operations across India.
.