Fabindia withdraws Rs 4000 crore IPO amid volatile market conditions

28 Feb 2023 , 09:39 AM

Fabindia, Indian apparel retailer has withdrawn its Rs 40 billion ($482.43 million) initial public offer due to uncertain market conditions. It becomes the latest company to shelve the IPO plans as interest rate worries pressure stock markets.

Fabindia said in a statement on Monday, “The decision to withdraw was taken as the current market conditions were not seen to be conducive for listing.”

The company had planned IPO with a fresh issue of shares worth 5 billion rupees and a sale of up to 25.1 million in existing shareholders’ stock.

The 62 year old company is popular for its sustainable and traditional Indian wear. It has said that it may consider going public in future. It also said that several ESG-focused funds has shown interest to invest in the company, however, it did not provided further details.

Shares of Fabindia’s rivals that are listed such as Vedant Fashions, Aditya Birla Fashion and Retail and Arvind Fashions are down 14%-21% this year.