FabIndia IPO likely to see strong demand, when it comes to the market

7 Jul 2022 , 04:14 PM

Popular clothing brand, FabIndia’s IPO, has received approval from SEBI. The IPO is likely to hit the markets soon. The expected size of the IPO is Rs 4000 crore. The company is likely to issue 7.75 lakh shares to artisans and farmers associated with it, as part of the IPO. 

In the past few years, FabIndia has emerged as a very popular brand in India. Its clothes have distringuished themselves because of their natural fabrics, colors and ethnic designs.  The company operates more than 300 stores in India. It also has around 14 international stores. Around 50,000 artisans make the products that are sold in the stores of the company. This network of 50,000 artisans is a very strong capability of the company.  Besides clothes, home decor products and ethnic furniture products are also sold in its stores.

FabIndia  enjoys the image of a socially responsible company with good corporate governance. In the year ending on 30th September 2021, the company posted a loss of around Rs 115 crore. In 2020 it had posted a profit of around Rs 34 crore. In 2019 it had posted a profit of around Rs 87 crore. Its IPO, when it comes to the market, is likely to see very strong demand. This is because of the strong core competency of the company, that is difficult to imitate by competitors. The fact that the company is now a very well-known brand will also help in generating strong demand for its shares in the IPO. 

https://www.indiainfoline.com/fabindia-ipo/