Fabindia appoints five bankers to raise up to $1 bn via IPO

New Delhi: Ethnic wear retailer Fabindia Overseas is gearing up for its initial stake sale as it has hired five investment banks to raise up to $1 billion through the primary offering, said sources.

According to people familiar with the matter, the fabric maker has hired ICICI Securities, SBI Capital Markets, JP Morgan, Credit Suisse and Nomura as investment bankers for its planned IPO.

Fabindia is the latest player intending to capitalize on the buoyant investor sentiments in the primary and secondary market as benchmark indices are at record highs.

The company is expected to file the draft paper with market regulator Sebi in next two months, the sources added. It is expected to seek a valuation of about $2 billion and sell 25-30 per cent stake in the IPO.

Azim Premji’s private equity fund, PremjiInvest, is among investors who will sell partial stakes in the company. Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani are also shareholders.

Over three dozen companies have hit the primary market so far this year, raising more than Rs 60,000 crore.