SEBI Approves FabIndia's IPO

FabIndia, India's leading ethnic clothing brand, will hold an initial public offering (IPO) shortly after the Securities and Exchange Board of India (Sebi) approves it's Draft Red Herring Prospectus (DHRP) on Monday. The FabIndia IPO consists of both an initial public offering and an Offer For Sale (OFS) by selling shareholders.

FabIndia filed its DHRP with the SEBI on January 24 this year. SEBI announced in an update that it has cleared the IPO for FabIndia. According to the DHRP, the FabIndia IPO will consist of a fresh issue of more than Rs 500 crore and an OFS of 2.5 crore equity shares by promoters and investors. FabIndia's IPO promoter also shares the company's plan to donate 7 lakh shares to farmers and artisans.

According to DHRP, the new revenue of Rs 500 crore from FabIndia's IPO will be used for a variety of purposes. Of this amount, Rs 250 crore will be used for voluntary repayment of  NCDs issued by the company, and Rs 125 crore will be used for prepayment or scheduled repayment of some of the certain outstanding loans. The remaining amount will be used for general corporate purposes.

Founded in 1960, FabIndia Limited is a consumer lifestyle platform with a well-established tradition focused on authentic and sustainable traditional Indian lifestyle products. Its brands "Fabindia" and "Organic India" are one of the most famous brands in the country.