Fabindia Shelves IPO Citing Current Market Conditions
FabIndia have seen record sales this year, with a 40% year-on-year growth in their business
![<div class="paragraphs"><p>Fabindia's Jashn-e-Riwaaz campaign. (Image: Screen shot of Fabindia website)</p></div>](https://media.assettype.com/bloombergquint%2F2021-10%2F0c08a256-73cb-427c-adcc-02a0b649aabf%2FScreenshot_2021_10_18_at_5_55_23_PM.png?rect=0%2C0%2C1160%2C653&auto=format%2Ccompress&w=200)
FabIndia Ltd., a clothing and furniture retailer inspired by traditional Indian crafts, has withdrawn its initial public offering, citing ongoing volatility.
The decision to withdraw the IPO was taken because "current market conditions were not seen to be conducive for listing a company of our size", the company said in a statement.
India's benchmark NSE Nifty 50 stock index is down over 4.32% so far this year, according to Bloomberg data. The stock markets continue to reel under the worry that major central banks, including the U.S. Federal Reserve, will prolong a high interest rate regime as inflation remains higher.
FabIndia will now explore other options for liquidity. The company may reconsider filing for an IPO in the future, depending on its need for growth capital and prevailing market conditions, it said in a statement.
We strongly believe that the Indian consumer story is going to be the engine that drives the world economy. We have seen record sales this year, with a 40% year-on-year growth in our business. This is our highest growth ever.FabIndia Company Statement
FabIndia's business focuses on deriving inspiration from traditional Indian products by working with local artisans and farmers, which makes the business ESG friendly.
"Several leading global ESG-focused funds have expressed keenness to invest in us," the company said. "They appreciate our strong ESG track record of more than six decades and believe in our business model, which is based on ESG values."
FabIndia also said that they have received a very positive response from global institutional investors, especially those focused on sustainability.