FabIndia IPO: Hindenburg Research sacrifices another IPO! Fabindia cancels issue – fabindia scraps ipo amid uncertain market conditions
Fabindia, a company selling artisan-made products, has canceled plans to launch its IPO worth around Rs 4,000 crore. A Fabindia spokesperson said on Monday that the company has also withdrawn the preliminary draft (DRHP) application filed with market regulator SEBI for listing on the stock market. Established in the year 1960, Fabindia buys and sells products made by over 40,000 artisans and craftsmen across the country. The company will look for other options to raise funds and may also think of bringing an IPO in the future. American short selling company Hindenburg Research released a report on January 24 in which several serious allegations were made against the Adani Group. Due to this, there has been a huge fall in the shares of Adani Group.
Why did you decide
On the decision to cancel the IPO plan, the spokesperson said, “The reason for not bringing the IPO is that the size of the IPO we are bringing does not seem favorable considering the current market situation.” The validity of the issue offer of Fabindia was expiring in April, 2023. Through this, there was a plan to bring an offer for sale (OFS) of 2.5 crore shares. If fully subscribed, Fabindia was expected to raise around Rs 4,000 crore from the IPO. The spokesperson said that the company will look for other options to raise funds and may also think of bringing an IPO in future.
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