FabIndia IPO

About FabIndia IPO

Back in 1960, FabIndia’s journey started as an Indian branch of an overseas company Fabindia Inc. Initially, the company exported home furnishings products to markets such as the US, Europe and the Middle East. But it gradually forayed into the ethnic apparel space and over the years, it became an iconic brand. 

Popular for working with rural artisans like weavers, craftsmen and farmers (through contract manufacturers), FabIndia has a pan-India presence. It has 309 Fabindia stores and experience centres in the country.

Along with expanding geographically, FabIndia has also diversified its product portfolio. From apparel and accessories, and home and lifestyle, to personal care and organic food – the company has created a large product portfolio.  

In 2013, it also added Organic India, a retailer of organic products, to its cart. This subsidiary of the company has 74 stores. It also sells Organic India products through retail touchpoints including general trade stores, modern trade stores and chemists.  

 After establishing its deep roots in India, the company now plans to launch the FabIndia Ltd IPO. The FabIndia IPO will be a combination of an offer for sale as well as a fresh issue. The money raised from the fresh issue will be used to reduce debt. 

Here are the key details about the FabIndia IPO: 

Financial snapshot

A quick look at FabIndia IPO’s strengths, risks and threats

Strengths  

1. Leading consumer lifestyle platform focused on authentic craft-based and organic products
2. Fabindia products are sold through multi-format retail stores, e-commerce, exhibitions and exports
3. FabIndia has the highest EBITDA margins among its peers. This is driven by backward integration and an efficient store format
4. Established sourcing base and supply chain infrastructure. Has a supplier community of around 50,000 artisans and over 12,500 farmers
5. Has a customer base of 43 lakh, as of 30 September 2021 
6. Exports products to 55 countries through distribution partnerships with wholesalers
7. The revenue from online sales rose from 4% in FY19 to around 18% in 6MFY22 
8. The ethnic apparel market in India is expected to grow at 10.2% CAGR and reach ₹1,879 billion by FY26

Risks and threats

1. Pandemic-like events could dent the company’s business
2. Depends on third-party contract manufacturers, including the artisans, craft clusters and farmers, for raw materials and goods
3. Has incurred losses in the past, including in FY21 and the first six months of FY22 
4. The growth of online retailers may create pricing pressures and increase competition
5. Derives a significant portion of revenue from the sales of apparel (46% in 6MFY22)
6. Reliance on customers’ discretionary spending
7. Substantial advertising and promotional expenditures may be required

FabIndia IPO details

| FabIndia IPO date 

The company has filed its Draft Red Herring Prospectus with the market regulator SEBI. It has also received a nod from SEBI to launch its IPO. But the FabIndia IPO’s opening date – in other words, the FabIndia IPO launch date – hasn’t been announced yet. The FabIndia IPO closing date also hasn’t been declared. Along with these dates, investors will be updated about the FabIndia shares allotment date. 

Investors, who receive allotment, can expect FabIndia shares to be credited in their demat account after the allotment date. Besides this, the FabIndia IPO listing date hasn’t been announced yet. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. Stay tuned with Uptox for all the key updates about the FabIndia IPO.

| FabIndia IPO price band

The FabIndia IPO is a book-built issue. The FabIndia IPO price band hasn’t been set yet. The price band is a price range within which investors can apply for the IPO. When the FabIndia IPO opens, interested investors will have to choose a price within the band to apply for the public issue. 

Also, the FabIndia IPO listing price will be determined on the listing date. The listing price is the price at which the shares of a company make their debut on the stock exchanges. 

| FabIndia IPO lot size

The FabIndia IPO details haven’t been declared. Hence, the FabIndia IPO lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Meanwhile, according to the news reports, the FabIndia IPO issue size could be around ₹4,000 crore.  

How to apply for the FabIndia IPO?

If you are interested in this investment opportunity but unsure how to apply for the FabIndia IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the FabIndia IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘FabIndia IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the FabIndia IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the FabIndia IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your FabIndia IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the FabIndia IPO

To apply for the FabIndia IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the FabIndia IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the FabIndia IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.