Fabindia IPO

Fabindia Limited is a 62-year-old consumer lifestyle platform that specialises in authentic, healthy, and Indian traditional lifestyle items. Fabindia IPO will hit the stock market in June 2022.

About Fabindia

Their brands, ‘Fabindia’ and ‘Organic India,’ are well-known in India, with a focus on “Celebrating India” and “Healthy Conscious Living,” respectively.

Clients can choose from a wide range of lifestyle products in the Apparel and Accessories, Home and Lifestyle, Personal Care, and Organic Food sections.

With their pan-India channel of 309 Fabindia stores and Expertise Centers, 74 Organic India stores and a network of retail touchpoints for Organic India, as well as their online platforms www.fabindia.com, www.organicindia.com, their mobile application, ‘Fabindia,’ and third-party marketplaces, they provide an omnichannel expertise.

Their business approach is designed to be sustainable, and they’ve attempted to develop a unique supply-side ecosystem by collaborating with a network of artisans and farmers throughout India.

Business Model

They are committed to supplying high-quality items to their clients while also supporting farmers and artisans with stable jobs and incomes through its Contract Manufacturers (including weavers and craftsmen).

They use Contract Manufacturers for their Fabindia products. Farmers that they work with directly as well as through affiliates are among their Organic India suppliers.

They regard the interests of craftsmen and farmers to be critical to their business strategy. They aim to provide products that are natural, ethically sourced, and environmentally friendly, while also incorporating traditional artisan skills into contemporary designs.

To distinguish their brand and products, they depend on their purpose-driven strategy, curated product portfolio, and involvement with their vendor, Contract Manufacturer, and consumer networks.

Past & Future

Their emphasis on India, its customs, people, and ecosystem drives their business. Craft is among India’s most important traditions, and they work with artisans via their contract producers to ensure that this cultural heritage is preserved.

They depend on agreement producers for artisan supply, with the core of their items being created by artisans and farmers rather than the organised sector, with the goal of lowering the ecological effect of their manufacturing, among other things.

To further enhance their retail presence, they have a two-pronged strategy: Expertise Centers, which house all of their product categories under one roof, giving clients an immersive and thorough Fabindia shopping environment.

Fabindia IPO

Fabindia Limited, headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 500 crore & 25,050,543 equity shares on 21 January 2022.

The offer includes a fresh issue of INR 500 crore and there is offer for sale (OFS) of 25,050,543 equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 100 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	2,324.58	2,103.00	2,466.04	2,130.85
Total Revenue	566.07	1,087.41	1,524.42	1,481.49
Profit After Tax	(51.72)	(115.63)	34.15	87.27

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(7.45)	(7.45)	3
Financial Year 2020	2.88	2.87	2
Financial Year 2019	5.77	5.74	1
Weighted Average	(1.80)	(1.81)
30 Sep. 2021	(3.10)	(3.10)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are some of the qualitative aspects that go into determining the Offer Price:

1. Leading consumer lifestyle marketplace specialising on genuine handcrafted and organic goods.
2. Ideally suited to meet the growing demand for high-quality Indian lifestyle and organic products.
3. ‘Sustainable-by-design’ business approach that prioritises the supplier and contract manufacturing community’s interests.
4. Supply chain infrastructure and a sourcing base have been established.
5. Their Omni-Channel Presence is remarkable.
6. A Founder-led corporation with a skilled management team with extensive experience.
7. With a track record of producing growth and return on capital, this company model is capital efficient.

Fabindia Peer Comparison

S. No.	Face Value	Company Name	PE
1	1	Trent Limited	NM
2	10	Aditya Birla Fashion and Retail Limited	NM
3	2	TCNS Clothing	NM
4	1	Tata Consumer	78.70 x
5	1	Dabur India Limited	59.04 x

1. All of the financial data for the listed industry peers indicated above is on a consolidated basis (unless otherwise stated) and comes from the relevant firm’s earnings reports/annual results for the year ending March 31, 2021 that were reported to stock exchanges.
2. The P/E Ratio was calculated by dividing the NSE closing market price of equity shares on January 18, 2022 by the Diluted EPS as of March 31, 2021.

Fabindia IPO Details

IPO Opening Date	June 2022
IPO Closing Date	June 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	0
Fresh Issue	500 Crore
Offer for Sale	25,050,543 equity shares

Fab India IPO Date

Fab India IPO opening date is June 2022, and the closing date is June 2022. The Fabindia issue may list in June 2022.

IPO Opening Date	June 2022
IPO Closing Date	June 2022
Basis of Allotment Date	June 2022
Initiation of Refunds	June 2022
Credit of Shares to Demat Account	June 2022
IPO Listing Date	June 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Fabindia Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Fab India IPO.

Fabindia IPO GMP

Fab India IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
June 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Fab India IPO Review

Fabindia Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Fabindia IPO is good or bad.

Fab IPO Risk

1. The COVID-19 epidemic has had, and may continue to have, a major negative impact on their business, notably on customers’ ability or desire to visit their stores.
2. Their business could suffer considerably if they are unable to preserve and increase the value and reputation of their brand, as well as offset any negative publicity.
3. Their business may suffer if they are unable to obtain raw materials, completed products, and packing material of the appropriate quality and quantity at competitive pricing.
4. They have previously suffered losses, which could have a negative influence on their business and the value of the Equity Shares.

Other Threats

• The rise of internet merchants may put pressure on prices, increase competition, and harm their business.
  Their business will suffer if they fail to recruit new consumers, keep existing clients, or maintain or expand sales to them.
• They compete in extremely competitive marketplaces in both the offline and online channels in each of their product divisions, and their inability to compete effectively could hurt their business.
• For the production of their products, they rely heavily on their network of Contract Manufacturers (who in turn employ artisans) and farmers.
• Clothing sales account for a considerable amount of their revenue.
• Lower revenues during a fiscal year’s holiday season can have a negative impact on a company’s business, financial position, and prospects.

Journey and Brands

In 1960, John Bissell established an Indian branch of an overseas firm, Fabindia Inc., which was involved in the export of home furnishings, and they later expanded into the ethnic fashion area.

Their company was founded in 1976, and they continued to specialise on ethnic garments, registering their brand ‘Fabindia’ in 1997.

On their ongoing mission to become a healthy shopper lifestyle platform, they increased their product offerings to include non-textile furniture, organic food, personal care, and jewellery.

In 2013, they bought a 40.00 percent share in Organic India. Through its subsidiary, FabCafe, they also offer healthy eating with locally inspired meals and beverages.

Their Firm owns a 68.46% ownership in FabCafe as of the date of this DRHP.

Network

As of September 30, 2021, they have a total of 309 Fabindia outlets across India, comprising 28 owned experience centres (“Experience Centers”), 185 firm and company-operated stores (“COCOs”) (including one flapgship store), and 96 franchisee-owned and franchisee-operated shops (“FOFOs”).

As of September 30, 2021, they also have 74 Organic India locations (including six franchisee stores) and a chain of retail outlets for Organic India (including modern trade shops, general trade shops, and pharmacies).

In 2017, they opened their first “Experience Center.” These Experience Centers are large-format COCOs that store all of Fabindia’s product and service offerings under one roof, giving clients a complete Fabindia retail experience.

Fab IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Fab India IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
June 2022	1
June 2022	2
June 2022	3

Management

Their Executive Vice Chairman, William Nanda Bissell, joined the firm’s Board of Directors in 1994. They have grown their retail footprint to 309 retail shops as of September 30, 2021, and have created a professional team to assist their growth during his term with the company.

William is supported by a seasoned management team that includes Viney Singh (Managing Director), Subrata Dutta (Group Managing Director for Organic India), Mukesh Kumar Chauhan (Executive Director), and Gopal Mishra (Chief Financial Officer and Chief Operating Officer), all of whom have decades of experience in a variety of industries and have played a key role in the company’s growth.

Promoters

• Bimla Nanda Bissell
• William Nanda Bissell
• Monsoon Latane Bissell
• Madhukar Khera
• JLB Partners Holding Inc.

Promoter’s Holding

Pre Issue Share Holding	53.64 %
Post Issue Share Holding

Fab IPO Prospectus