Biba Fashion’s IPO Put on Hold by SEBI

The Warburg Pincus-backed Biba Fashions IPO has been suspended by the capital markets regulator, the Securities and Exchange Board of India, an update on the SEBI website showed on Monday. Raise funds through an initial public offering (IPO). SEBI said “publication of comments has been deferred” regarding ethnic fashion brand Biba Fashion’s planned initial share sale. of shares worth Rs 90 crore and an Offer to Sell (OFS) of 2.Rs 77 crores from the developer and existing investors. Under the OFS, promoter Meena Bindra will sell up to 37.52 lakh shares, and private equity investors Highdell Investment and Faering Capital India Evolving Fund, backed by Warburg Pincus, will sell up to Rs 1.84 billion and 55, respectively. Sell ​​86 lakh shares. The book, which lists the top executives on the issue, includes JM Financial, Ambit Private Ltd, DAM Capital Advisors, Equirus Capital and HSBC Securities and Capital Markets. Link Intime India is the registrar for the Biba Fashions IPO. Fashions will join companies such as TCNS Clothing Company, Trent, Go Fashion (India), Vedant Fashions, and Aditya Birla Fashion and Retail.

The average P/E of the industry peer group is 188.61x. Biba Fashions develops, designs, sources, markets, and distributes a broad portfolio of Indian women’s and girls’ clothing across multiple brands, covering almost every Indian women’s clothing need and also offers consumers a range of products in the fields of jewelry, shoes, handbags, and fragrances. The Company plans to use the net proceeds to repay or repay certain loans used by the Company of Rs 70 crore and for general corporate purposes. Launched in 1986, the company’s flagship brand “BIBA” is a segment of Indian clothing. According to the Technopak report, the women’s clothing market in India was valued at US$21.8 billion or 36% of the total apparel market in India (FY 2020) and is expected to surpass other major market segments such as men’s and children’s apparel and is expected to reach $33.8 billion by FY 2025. Women’s apparel market is Indian women’s apparel the dominant segment and since the Fiscal year 2020 for about 71% of the market, the preferred type of clothing is the Indian women’s clothing segment.

 The Company develops, designs, sources, markets, and sells a broad portfolio of Indian women’s and girls’ clothing across multiple brands. It also offers consumers a range of products ranging from jewelry, shoes, handbags, and fragrances. Fundraising in recent months due to market volatility. Although many companies have submitted their respective designs or received Sebi’s approval, they are waiting for the right moment to start their spending.