A Close Look into the IPO
As per sources close to the developments, Biba Apparel is looking to raise around Rs. 1,500 crores to Rs. 2,000 crores through its public offering. This IPO will likely be a combination of both primary and secondary issues of equity shares.
The fashion firm is expected to file its DRHP with the market regulator during the first quarter of this calendar year. More details regarding the public offering are awaited.
Biba Apparels will use the proceeds to raise its growth capital. Moreover, there would be a partial exit of private equity investors Faering Capital and Warburg Pincus through this IPO.
Who Are the Advisors of Biba Apparels IPO?
Recent reports suggest that Biba Apparels has picked up 4 banks as advisors for its upcoming IPO. These include the following entities:
DAM Capital and
Know More About Biba
Biba Apparels Private Ltd was launched by designer Meena Bindra in 1988. It has recently entered into the footwear and jewellery manufacturing segment. Moreover, Biba has also launched its fragrance brand Spelle.
Biba products are available across 120 cities and towns of the country. It has recently opened its 300th store in Jaipur. The fashion firm bought a 26.66% stake in couturier Anju Modi’s company Anjuman Brand Designs.
According to Siddharth Bindra, MD of Biba Apparels, the fashion firm intends to expand itself in Tier I and Tier II cities. It is looking to add around 200 more stores within the next three years.
How Are the Other Fashion Peers Doing?
Several Indian fashion brands have either launched their public offerings in 2021 or are looking for it this year. Sequoia Capital-backed Go Colours, which manufactures and retails women’s bottom wear, has raised Rs. 1,014 crores through it in November 2021. Go Colours IPO was a success, with the company listing at a 90% premium of its issue price.
TCNS Clothing and Aditya Birla Fashion & Retail have already listed themselves on the stock. Their stock prices have witnessed a significant rise in the last six months. Vedant Fashion (supported by Kedaara Capital) and FabIndia (supported by PremjiIvest and Lighthouse Funds) are also looking to go public this year.
Biba Apparels has ambitious plans of growth and expansion, which it wishes to fulfil through its upcoming IPO. For more information about IPOs, the stock market, and investment, make sure to check out the Angel One blogs.
Frequently Asked Questions
What is the e-commerce sales scenario of Biba?
According to Siddharth Bindra, e-commerce sales of Biba Apparels have climbed by 20% to 25% during the last 17-18 months. The company expects that e-commerce sales will jump 30%-35% within the next two or three years. It has already started to focus on strategies to improve e-commerce sales.
How much did Warburg Pincus and Faering Capital invest in Biba?
Warburg Pincus and Faering Capital pushed in Rs. 300 crores into Biba Apparels back in December 2013. This marked the exit of Future Lifestyle Fashions. This investment was the largest private equity investment in the Indian ethnic wear sector at that point in time.
What are the opening and closing dates of Biba Apparels IPO?
The opening and closing dates of Biba Apparels IPO is not yet finalised. The company is yet to file its DRHP with SEBI.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.