FabIndia plans to raise up to Rs 4,000 crore through IPO - Top 10 things investors must know

Lifestyle retail brand FabIndia plans to raise up to Rs 4,000 crore through an initial public offer and in a novel approach, as per a PTI report. 

Investors must know these top 10 things about the company and its IPO:

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1) Amount to raise: FabIndia plans to raise up to Rs 4,000 crore through an initial public offer, as per PTI. 

2) Objective: Proceeds from the fresh issue of shares will be utilised for voluntary redemption of the company's NCDs (Non Convertible Debentures), pre-payment or scheduled re-payment of a portion of certain outstanding borrowings and general corporate purposes.

3) Gifts to artisans and farmers: FabIndia plans to raise up to Rs 4,000 crore through an initial public offer and in a novel approach, the company's promoters also plan to gift more than 7 lakh shares to artisans and farmers.

4) IPO Issue size : On Saturday, the company filed the Draft Red Herring Prospectus (DRHP) with markets watchdog Sebi for the offer that will include fresh issue of shares worth up to Rs 500 crore. Besides, there will be an Offer For Sale (OFS) of up to 2,50,50,543 shares, as per PTI. 

5) Offer details: there will be an Offer For Sale (OFS) of up to 2,50,50,543 shares, as per PTI. 

6) Lot size and minimum & maximum order: "Our promoters, namely, Bimla Nanda Bissell and Madhukar Khera have opened their respective demat accounts and have transferred 4,00,000 equity shares and 3,75,080 equity shares, respectively, that are proposed to be transferred by way of gift to the artisans and farmers," the DRHP said.

7) Book Running Lead Manager and registrar: ICICI Securities Ltd, Credit Suisse Securities (India) Pvt Ltd, JP Morgan India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets Ltd and Equirus Capital Pvt Ltd are the lead managers of the issue, as per PTI. 

8) ESG (Environmental, Social and Governance) initiatives : In the DRHP, the company has mentioned about its ESG (Environmental, Social and Governance) initiatives, saying it believes that "enabling and uplifting the people we work with, taking care of the environment, and being ethical in our conduct with have a long and lasting positive impact".

9) About the company : Fabindia is India's largest private platform for products that are made from traditional techniques, skills and hand-based processes, as per its official website. 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.

10) Mission of the company : The website of the company says, "We will harness the transformative power of a well-run business committed to profitable growth in support of Fabindia’s Vision. We will strengthen and support our community of customers, designers, artisans, farmers, makers and entrepreneurs inspired by India. We will give our customers products that delight them by interpreting our rich heritage and traditional knowledge, while protecting the natural environment."