Fabindia IPO details – Key products, Finance, Management team and Industry outlook

The company and its operation:
Fabindia

Fabindia Limited is expected to come up with IPO later this year. The company was incorporated on 14 December 1976 in South Delhi as “‘Fabindia Overseas Private Limited”. The Company name was changed to ‘Fabindia Private Limited’ on October 13, 2021. Fabindia deals in garments, furnishings, fabrics, and ethnic products. The company provides online shopping services.

Fabindia is India’s largest private platform for products that are made from traditional techniques, skills, and hand-based processes. Fabindia’s products are affordable, natural, craft-based, and contemporary. The company offers its products under two brand names ‘Fabindia’ and ‘Organic India’ which are well known in India. Fabindia has a network of 309 stores and experience centers across India. The company have approximately 74 Organic India stores covering all cities in India.

Industry Overview:

Fabindia caters to different segments of the retail industry; apparel, fabrics, furniture, food, beverages, etc. Market size of the Indian retail sector was INR 75.2 trillion in FY 2020 with a growth of 12.4% from 2015. The Indian retail industry too will revive the growth trajectory of 9.5% over the next five years to 2025. Organized retail sector market size was around INR 8.9 trillion in 2020. Organized retail is contributing ~11.8% to the total retail.

India is expected to witness approximately 300 million online shoppers by 2025 which is double from 150 million in 2020 driven by higher per capita income, work from home culture. The same trend will continue in future as well. This will benefit the top line of Fabindia in the next three to five years.

Key Products & Services: 

Fabindia offers its product in four categories; first – Apparel and accessories – like ethnic and western womenswear, menswear and kids wear, jewelry, bags, and footwear for men, women, and children; floor coverings, upholstery fabrics, and curtains; second – Home and lifestyle – furniture, lighting, stationery, tableware, decorative, cane basket, and handcrafted utility items; third – Personal care, consisting of skin care, hair care, and fragrances with naturally inspired ingredients, and fourth – Organic food consists of infusions, teas, staples, healthy snacks, detox kits, preserves, agri-products, Ayurvedic supplements, and personal care. There is huge demand for these products in India.

Management team:

John Bissell founded Fabindia in 1960. He is an American businessman. He managed the handloomed textile export business in India for over 30 years.

Gyanendra Nath Gupta is the Chairman and Independent Director of Fabindia Company. He has been on the Board of directors for over a year. Gyanendra holds a master’s degree in science. He too holds a law degree from Agra University. From 1999, he has been on the executive board of the Centre of Science and the Environment. Gyanendra served as a member of the Income Tax Appellate Tribunal Bar Association, New Delhi.

William Nanda Bissell is the Executive Vice Chairman and Director of Fabindia. He is one of the Promoters of the Company. William has been on the board of directors in the company for over 30 years. He holds a bachelor’s degree in arts from Wesleyan University, Middletown, Connecticut. William has over 27 years of experience in the retail and apparel industry.

Financial analysis:

Fabindia’s total revenue decreased by 28.6% from INR15.244 billion in the year 2020 to ₹10.874 billion in the year 2021. Total expenses too decreased by 16.8% from INR 14.8 billion in 2020 to INR 12.35 billion in 2021. Loss after tax was INR 1.2 billion in the year 2021. The company recorded a profit after tax of INR 0.31 billion in the year 2020.

Fabindia Financial snapshot
Fabindia Financial Snapshot
Initial public offering (IPO):

Fabindia is coming up with an initial public offering of INR 500 crores of fresh issues. The objective of the IPO is to utilize net proceeds to reduce the debt of the company.

The main objectives of the IPO are as follows. First, Voluntary redemption of NCDs issued by Fabindia and the accrued interest thereon. Second, Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company and the accrued interest thereon. Third, for other general corporate purposes.

Fabindia IPO Details: Fresh issue, dates, price band
Subscription DatesComing soon
Price BandComing soon
Offer for SaleNA
Fresh Issue of SharesINR 5,000 million
Equity Shares outstanding before the Issue147,779,475 Equity Shares
Minimum bid (lot size)Coming soon
Face ValueINR 1 Per share
Retail Allocation %Coming soon
Listed OnBSE and NSE
Fabindia IPO details: date, price band and listing

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