FabIndia IPO Upcoming
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About FabIndia
Fabindia Private Limited, founded in 1960, is India’s largest private platform for products crafted using traditional techniques and hand-based processes. By connecting thousands of rural artisans to urban markets, the brand fosters sustainable employment while preserving India’s rich handicraft heritage. Known for its natural, artisan-based, and affordable products, Fabindia offers a wide range of clothing, home decor, and organic foods that blend tradition with contemporary design.
Financials of FabIndia
Utilisation of proceeds
| Purpose | INR crores (%) |
| Voluntary redemption of Non-Convertible Debentures (NCDs) issued by the Company, along with the accrued interest (NCD Redemption) | 250 cr |
| Prepayment or scheduled repayment of a portion of specific outstanding borrowings availed by the Company, including accrued interest | 125 cr |
| General corporate purposes | – |
Strengths
- Fabindia has a strong brand in the ethnic and handicraft retail market with over 360 stores, giving it a well-established market position.
- The company has diversified its revenue by including more products from Organic India (herbal and ayurvedic items), which has helped its growth.
- Fabindia’s core operations (excluding subsidiaries) are efficient, with healthy profit margins expected to improve through cost-saving measures and a well-managed supply chain.
- Despite current debt challenges, the company has a strong financial base and plans to raise funds through private investors to improve its financial position.
- Expansion in retail footprint and stores under the Company-Owned Franchise-Operated (COFO) model is forecasted to drive significant revenue growth in the medium term.
Risks
- Organic India (a part of Fabindia) has experienced significant losses and write-downs, which have impacted Fabindia’s overall performance.
- Fabindia’s debt has increased due to borrowing to acquire more shares in Organic India and higher working capital needs, which is putting pressure on its finances.
- The company earns about 70% of its revenue from the apparel segment, which is highly competitive, making it risky to rely on just one source of income.
- Higher inventory levels due to changes in the store model have led to increased borrowing for working capital, which will need to be managed carefully.
- Fabindia’s sales are sensitive to economic downturns,. During tough financial times, people may cut back on spending which could impact the company’s performance.