Fabindia Limited IPO Company Profile:
Fabindia Limited is a consumer lifestyle platform with an established 62-year legacy focused on authentic, sustainable, and Indian traditional lifestyle products. The company’s brands, ‘Fabindia’ and ‘Organic India’ are well-recognized brands in India, with a focus on the core principles of “Celebrating India” and “Healthy Conscious Living”, respectively. The company offers a diverse portfolio of lifestyle products to its customers across Apparel and Accessories, Home and Lifestyle, Personal Care, and Organic Food categories. Fabindia Limited’s business model is focused on sustainability by design and the company has sought to create a differentiated supply-side community through a model of engaging a network of artisans, and farmers across India.
Fabindia Limited delivers an Omni channel experience with its pan-India network of 309 Fabindia stores and Experience Centers, 74 Organic India stores, and a network of retail touchpoints for Organic India as of September 30, 2021, and the company’s online platforms www.fabindia.com, www.organicindia.com, its mobile application, ‘Fabindia’ and third party marketplaces.
Fabindia Limited has an expansive supplier Community beginning with a network of clusters comprising close to 50,000 artisans from 109 districts spanning 21 states, as of March 31, 2021, and over 2,200 farmers that the company has access to directly and 10,300 farmers that it has access to through associates, from 11 districts in five states, whom the company considers an integral part of the business
Fabindia Limited IPO Business Verticals:
- Apparel and accessories:
It consists of ethnic and western womenswear, menswear and kidswear, ethnic and western footwear, handcrafted apparel and accessories such as bags, jewelry, stoles, shawls, and wraps; our portfolio includes both daily and occasion wear for customers’ wardrobe needs.
- Home and lifestyle:
It consists of furniture, soft home furnishings, home décor, giftware, and an interior design studio feature, which is positioned to leverage hand-crafted curated designs in the home solutions space in India with an emphasis on the use of natural fibers. The product portfolio in this business vertical spans utility to niche décor
- Personal care:
It consists of skin care, hair care, and fragrances with naturally inspired ingredients. The company operates in this vertical both directly and through its subsidiaries, Biome Life Sciences India Private Limited, in which the Company holds a 50.01%stake, as of the date of this Draft Red Herring Prospectus.
- Organic food:
It consists of infusions, teas, staples, healthy snacks, detox kits, preserves, agri-products, Ayurvedic supplements, and personal care. The company operates in this vertical through its subsidiary Organic India Private Limited “Organic India”, in which the Company holds a 63.79% stake, as of the date of this Draft Red Herring Prospectus. Through Organic India, the company introduced the Tulsi leaf in various products and indigenized organic cultivation of various herbs, flowers, seeds, and grains such as quinoa, chamomile, and chia in India, prior to which these products were primarily available in India as imports.
Fabindia Limited IPO Revenue from Business Verticals:
| Segment | 6M FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % | FY-19(in cr.) | % | CAGR |
| Apparel | 246.69 | 46.48 | 407.43 | 41.55 | 886.78 | 59.73 | 852.19 | 58.50 | -21.8% |
| Home and Lifestyle | 69.29 | 13.06 | 123.80 | 12.62 | 153.49 | 10.34 | 151.60 | 10.41 | -6.5% |
| Personal Care | 15.27 | 2.88 | 24.46 | 2.49 | 24.74 | 1.67 | 27.14 | 1.86 | -3.4% |
| Organic Food | 145.86 | 27.48 | 304.65 | 31.07 | 281.18 | 18.94 | 292.85 | 20.10 | 1.3% |
| Food and Beverages | 8.87 | 1.67 | 16.48 | 1.68 | 24.32 | 1.64 | 7.53 | 0.52 | 29.9% |
| Others(including accessories) | 44.79 | 8.44 | 103.83 | 10.59 | 114.04 | 7.68 | 125.44 | 8.61 | -6.1% |
| Total | 530.77 | 100.00 | 980.65 | 100.00 | 1484.54 | 100.00 | 1456.75 | 100.00 | -12.4% |
Fabindia Limited IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹1 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | Not Available |
| Fresh Issue | [●] shares
(aggregating up to ₹500.00 Cr) |
| Offer for Sale | 25,050,543 shares
(aggregating up to [●]) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 75% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| Company Promoters | Bimla Nanda Bissell, William Nanda Bissell, Monsoon Latane Bissell, Madhukar Khera, and JLB Partners Holding INC. |
Fabindia Limited IPO Financial Analysis:
| Particulars | 6M FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | FY-19(in cr.) | CAGR |
| Revenue from sale | 530.77 | 980.65 | 1484.54 | 1456.75 | -12.4% |
| Other Operating Revenue | 25.27 | 78.99 | 23.51 | 17.56 | |
| Other Income | 10.03 | 27.77 | 16.37 | 7.19 | |
| Cost Of Goods Sold | 198.84 | 380.27 | 569.37 | 545.07 | |
| Employee Cost | 112.93 | 196.32 | 233.09 | 211.97 | |
| Other expenses | 189.26 | 380.73 | 433.25 | 367.15 | |
| EBITDA | 65.03 | 130.10 | 288.72 | 357.30 | -28.6% |
| EBITDA margin% | 11.70% | 12.28% | 19.14% | 24.24% | |
| Depreciation | 97.59 | 202.21 | 186.41 | 158.06 | |
| Interest | 39.63 | 73.31 | 62.96 | 46.71 | |
| Impairment Losses | 0.36 | 1.88 | 0.00 | 0.00 | |
| Profit in associate companies | 0.46 | 0.20 | 0.04 | 0.31 | |
| Profit/Loss before tax | -72.09 | -147.10 | 39.39 | 152.83 | -198.7% |
| Total tax | -20.37 | -31.47 | 5.24 | 65.56 | |
| Profit/Loss after tax | -51.72 | -115.63 | 34.15 | 87.27 | -209.8% |
| Dep./revenue% | 18.39% | 20.62% | 12.56% | 10.85% | |
| Int./revenue% | 7.47% | 7.48% | 4.24% | 3.21% |
Fabindia Limited IPO Strengths:
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The Indian ethnic apparel market was estimated at ₹1,418 billion for Fiscal 2020. While the market was affected by COVID-19 during Fiscal 2021, it is expected to grow at a rate of approximately 10.2% per annum between Fiscal 2022 and Fiscal 2026 to reach ₹1,879 billion by Fiscal 2026. However, the branded ethnic apparel category is expected to grow at a higher rate of approximately 15.8% per annum between Fiscal 2022 and Fiscal 2026 driven by the increasing share of the branded segment in the overall ethnic apparel market.
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The organic food and wellness market in India was estimated at ₹14.3 billion in Fiscal 2020 and is expected to grow at a rate of approximately 18.1% per annum to reach ₹38.7 billion by Fiscal 2026. Health, nutrition, and sustainability are increasingly becoming central to what consumers value. In particular, Millennials and Generation Z have a strong understanding of health and environmental issues, and they demonstrate their focus on these issues through their purchase decisions. COVID-19 has accelerated the shift towards organic products and the focus on healthy living.
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Expenditure on home linen, furniture, and furnishings accounted for approximately 1.7% of India’s total private final consumption expenditure and has grown at a rate of 8.3% per annum between Fiscal 2012 and Fiscal 2020. There exists significant growth headroom for the home décor market in India.
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Fabindia Limited is an Omnichannel business combining digital with physical retail. The company sells its Fabindia products through multi-format retail stores, e-commerce, exhibitions, and through exports. Within retail stores, the company has three formats: COCOs, Experience Centers, and FOFOs. The company also sells its products through its own websites, mobile application, and various e-commerce platforms. The company also participates in exhibitions for the sale of Fabindia products.
Fabindia Limited IPO Risk Factors:
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Fabindia Limited has incurred losses in the past, including in Fiscals2021 and in the six months that ended September 30, 2021, and it may incur losses in the future. The total comprehensive loss of the company was ₹114.16 crores and ₹56.87 crores in Fiscal 2021 and in the six months ended September 30, 2021, respectively.
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Fabindia Limited operates in highly competitive markets in each of its product segments in both the offline and online channels and an inability to compete effectively may adversely affect the business, results of operations, and financial condition of the company.
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There is no assurance that the Contract Manufacturers Fabindia Limited engages or the farmers/artisans engaged by such Contract Manufacturers will accept the future orders of the company on the same or similar terms, or at all. Fabindia Limited may face the risk of its competitors offering them better terms, which may cause them to cater to its competitors alongside, or even instead of the company.
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Fabindia Limited derives a portion of its revenues from sales at retail franchise stores run by independent franchisees and expects to continue to do so. Any failure to maintain relationships with such franchisees could adversely affect the business, results of operations, and financial condition of the company.
Fabindia Limited IPO Objects of the Offer:
Fabindia Limited proposes to utilize the Net Proceeds towards funding the following objects:
- Voluntary redemption of NCDs issued by the Company and the accrued interest thereon(“NCD Redemption”)
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company and the accrued interest thereon; and
- General corporate purposes
Fabindia Limited IPO Prospectus:
- Fabindia Limited IPO DRHP–
- Fabindia Limited IPO RHP-
Registrar to the offer:
Link Intime India Private Limited
Tel: + 91 22 4918 6200
E-mail: fabindia.ipo@linkintime.co.in
Investor grievance e-mail: fabindia.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact person: Ms. Shanti Gopalkrishnan
SEBI registration number: INR000004058
Fabindia Limited IPO FAQ
Ans. Fabindia Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Fabindia Limited IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.