Lifestyle retail brand FabIndia plans to raise up to £400 million through an initial public offer (IPO) and the company's promoters also plan to gift more than 700,000 shares to artisans and farmers. The company last week filed the Draft Red Herring Prospectus (DRHP) with markets watchdog Sebi for the offer that will include fresh issue of shares worth up to £50 million.
Besides, there will be an Offer For Sale (OFS) of up to 2,50,50,543 shares. Market sources said the IPO is expected to be worth around £400 million. In order to "reward and express gratitude to certain artisans and farmers engaged with the company or its subsidiaries", FabIndia's two promoters - Bimla Nanda Bissell and Madhukar Khera - intend to transfer 4,00,000 shares and 3,75,080 shares, respectively, to them, subsequent to the filing of the DRHP.
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.
