Fabindia shelves $482 mln IPO due to rough market conditions (updated)

ARVIND FASHIONS

27/02/2023 06:26

(Adds details, background)
       BENGALURU, Feb 27 (Reuters) - Apparel retailer Fabindia
on Monday said it has withdrawn its 40 billion rupee ($482.4
million) initial public offering amid rough market conditions,
becoming the latest company to scrap listing plans as interest
rate worries pressure stock markets.
    India's benchmark Nifty 50 stock index  .NSEI  is down over
4% so far this year on worries that major central banks,
including the U.S. Federal Reserve, will prolong a high interest
rate regime due to a persistent rise in inflation.
    Fabindia's listed rivals Vedant Fashions  VEDN.NS , Aditya
Birla Fashion and Retail  ADIA.NS  and Arvind Fashions  ARVF.NS 
are down 14%-21% this year.
    "The decision to withdraw was taken as the current market
conditions were not seen to be conducive for listing," a
Fabindia spokesperson said in a statement.
    Fabindia had planned a fresh issue of shares worth 5 billion
rupees and a sale of up to 25.1 million in existing
shareholders' stock. It intended to use the proceeds to repay
debt and redeem non-convertible debentures.
    "The withdrawal ... will allow Fabindia to explore other
options of liquidity. The company may reconsider filing an IPO
in the future, depending on its need for growth capital and the
market conditions," the company said.
        Jewellery retailer Joyalukkas, e-commerce firm Snapdeal
and wearable electronics company boAt have all 
    pulled their IPOs
     due to uncertain market conditions.
  
        Sixty-two-year-old Fabindia, popular for its sustainable
and traditional Indian wear, also said that several global
ESG-focused funds had expressed keenness to invest in the
company. It did not provide additional details.
  
    
($1 = 82.9130 Indian rupees)

 (Reporting by Aleef Jahan and Chris Thomas in Bengaluru;
Editing by Janane Venkatraman and Sonia Cheema)
 ((aleefjahan.cs@thomsonreuters.com))