Indian ethnic brand Fabindia said it has withdrawn its Rs 4,000 crore initial public offering (IPO) due to volatile market conditions. In a regulatory statement on Monday, the 62-year-old company said that the current market conditions were not seen to be conducive for listing at the bourses. “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. The company, which is known for its Indian ethnic sustainable wear, said it may go ahead with its IPO in the future and that several global ESG-focused funds had expressed an interest to invest. The company hasn’t shared the details of the investments.
Last year in January, Fabindia said it would raise Rs 40 billion by selling new shares worth Rs 5 billion and up to 25.1 million in existing shareholders’ stock in the IPO, intending to use proceeds to repay debt and redeem non-convertible debentures.
Fabindia’s decision to withdraw its IPO follows the recent shelving of IPO plans by Snapdeal and boAt due to uncertain market conditions. Joyalukkas India, a leading jeweller, also withdrew its Rs 2,300 crore IPO citing weak sentiments.
Market analysts, speaking anonymously, have stated that the current market sentiments are weak, and investors are being cautious in choosing the right set of companies to obtain sustainable returns. After Monday’s trading session, BSE companies’ total market capitalisation touched Rs 258 lakh crore, the lowest level seen since July of 2022. Investors have lost a total market value of Rs 2 lakh, with a significant contribution to the massive slump in Adani Group stocks, which saw the group value slipping below Rs 7 lakh crore.
In Monday’s trade, the market capitalisation (m-cap) of 10 Adani group companies has fallen below the Rs 7 lakh crore mark, thanks to persistent selling pressure in key names, including Adani Total Gas Limited, Adani Enterprises Limited, Adani Green Energy and Adani Transmission Limited.
About Fabindia:
Fabindia is India’s largest private platform for products that are made from traditional techniques, skills and hand-based processes. Fabindia links over 55,000 craft based rural producers to modern urban markets, thereby creating a base for skilled, sustainable rural employment, and preserving India’s traditional handicrafts in the process. Fabindia’s products are natural, craft based, contemporary, and affordable.
For More Latest News Click Here
