Ethnic wear retailer Fabindia Overseas is gearing up for its initial stake sale as it has hired five investment banks to raise up to $1 billion through the primary offering, said sources.
According to people familiar with the matter, the fabric maker has hired ICICI Securities, SBI Capital Markets, JP Morgan, Credit Suisse and Nomura as investment bankers for its planned IPO.
As one of many newest gamers to wager on the hovering investor sentiment which have captured the first and secondary markets, the corporate, which competes with market leaders corresponding to Khadi and Village Industries Fee (KVIC), amongst a number of others, could file its draft papers with markets regulator Sebi in just a few months.
Fabindia is expected to submit its draft initial public offering (IPO) documents with the markets regulator by November, one of the two people said. Mint first reported in June that the company was exploring an IPO at a $2 billion valuation.
Depending on shareholders’ decisions to exit during the IPO, the issue size could be as small as $500 million, the second person said, adding that the IPO valuation has not been decided.
PremjiInvest, one of the company’s investors, will sell a part of its stake in the company during the IPO. Other investors in the company include Lighthouse Funds, funds managed by Axis Alternative Asset Management and Kotak Securities. Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani are also shareholders.
Categories: IPO Bankers