New Delhi: The month of July is expected to be a busy month for IPOs on Dalal Street. Many upscale fashion brands line up their initial public offer (IPO) plans to make an entry into Dalal Street.
According to a report in the Economic Times, fashion labels, including Manyavar, Fabindia, GoColours, Biba Apparels seek public listings.
These fashion levels are in talks with multiple investment bankers to launch their IPOs, the publication mentioned citing industry sources. Nearly all of the brands mentioned above are backed by bulge-bracket private equity investors, including Warburg Pincus and Faering Capital.
According to the financial daily, Manyavar and Fabindia are planning IPOs to raise between Rs 2,000 crore and Rs 2,500 crore and GoColours is likely to enter the market with an issue size of Rs 800-900 crore. Meanwhile, Biba is in initial stages of talks for a public listing, bankers told ET.
Vedant Fashions, owner of Manyavar, and Go Fashion (India), which operates under the GoColours brand, have already hired investment bankers to shepherd their IPOs, one of the bankers told the publication.
IPOs of most of these fashion labels will include a mix of both primary issuances and offers for sale (OFS) from existing investors, including private equity players. Kedaara Capital is one of the investors in Manyavar, while PremjiInvest and Lighthouse Funds are invested in Fabindia.
Private equity firms Warburg Pincus and Faering Capital have stakes in Biba Apparels, while Sequoia and ICICI Venture are large investors in Go Fashion.
Worth mentioning here is that in-store sales have been hurt at exclusive fashion retailers through the pandemic, but robust web-commerce business and increased focus on casual wear helped protect these labels.
It may be noted that except for Arvind Fashions, most of the listed fashion brands have seen their shares rallying over the last one year. Shares of Monte Carlo Fashions have jumped 117% in the last one year while Aditya Birla Fashion and TCNS Clothing company have gained 76% and nearly 72% respectively in the last year.