Premji Invest-backed apparel retailer has shelved its initial public offering (IPO) plans amid tough macroeconomic conditions. The company had planned to raise $482 million (~Rs 4,000 crore) via a fresh issue of shares worth Rs 500 crore and an offer of sale (OFS) of up to 2.5 lakh shares of existing stockholders.
“The decision to withdraw was taken as the current market conditions were not seen to be conducive for listing,” Fabindia said in a statement on Monday, according to a Reuters report.
The company said the withdrawal will allow it to look at other options of liquidity and may reconsider filing for an IPO in the future, depending on the need for growth capital in the midst of the current market scenario.
The 62-year-old retailer, known for its sustainable and traditional Indian wear, joins the likes of consumer electronics firm boAt and jewellery chain Joyalukkas that have scrapped public listing plans owing to uncertain market conditions. More recently, ecommerce firm Softbank-backed Snapdeal also withdrew IPO plans.
Fabindia’s listed entities—Vedant Fashion, Aditya Birla Fashion and Retail, and Arvind Fashion—are down between 14%-21% so far this year.
