FabHotels, a budget hospitality chain, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO).
The Bengaluru-based company, backed by Goldman Sachs, joins other firms like Leap India and Molbio in receiving SEBI's green light for their IPOs.
Travelstack Tech, the parent company of FabHotels, has secured SEBI's observation letter, allowing it to move forward with its proposed public issue.
The IPO will consist of a fresh issue of equity shares worth ₹250 crore and an offer for sale (OFS) of up to 2.68 crore equity shares by existing shareholders.
The OFS will involve partial stake sales by early investors such as Accel, Goldman Sachs, Qualcomm, and angel investor Anupam Mittal. Founders Vaibhav Aggarwal and Adarsh Manpuria are also expected to sell a portion of their holdings.
The capital raised through the fresh issue will be primarily used for working capital requirements, repayment of certain borrowings, and general corporate purposes.
The IPO will be managed by Motilal Oswal, IIFL Capital, and Nuvama, with MUFG Intime acting as the registrar.
Read More: National Stock Exchange of India Appoints 20 Merchant Bankers for Long-Awaited IPO!
According to the draft red herring prospectus (DRHP), Accel India is the largest external stakeholder with a 21.75% stake, followed by Qualcomm Asia with 8%. Vaibhav Aggarwal owns 19.20% of the company, which was founded in 2014.
FabHotels operates over 1,300 properties across more than 50 major Indian cities, including Mumbai, NCR, Bengaluru, and Goa.
As per the DRHP, the company reported operating revenue of ₹400 crore in the first half of the ongoing fiscal year (H1 FY26), with net profits of ₹32 crore during the 6-month period ending September 2025.
FabHotels' parent company, Travelstack Tech, has received SEBI approval for its IPO, aiming to raise funds through a fresh issue and offer for sale. The company plans to utilise the proceeds for various financial needs, marking a significant step in its growth trajectory.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 17, 2026, 9:46 AM IST
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