Aug 09, 2022 08:55 am
The Securities and Exchange Board of India (Sebi) has put in abeyance the initial public offering (IPO) approval process of of ethnic wear fashion label Biba Fashion, an update on the market regulator's website showed on Monday.
Sebi said "issuance of observations (has been) kept in abeyance" with regard to the IPO of Biba Fashion, but did not disclose the reason for the same. The issuance of observations by Sebi implies its go-ahead for an IPO. Sebi usually gives its observations on IPO papers in 30 days.
Backed by Warburg Pincus and Faering Capital, Biba Fashion had filed its Draft Red Herring Prospectus (DRHP) with Sebi on April 12 to raise funds through an initial share sale.
The IPO comprises fresh issuance of equity shares worth ₹90 crore and an offer for sale (OFS) of 2.77 crore (27,762,010) equity shares by promoter and existing investors, according to the draft red herring prospectus (DRHP).
As a part of the OFS, promoter Meena Bindra will offload up to 37.52 lakh equity shares and private equity investors, Warburg Pincus-backed Highdell Investment and Faering Capital India Evolving Fund will sell up to 1.84 crore and 55.86 lakh equity scrips, respectively.
The company said it proposes to utilise the net proceeds from the fresh Issue towards funding of Repayment and /or prepayment of certain borrowings availed by the company estimated to be ₹70 crore and balance amount towards general corporate purposes.
Launched in 1986, the company's flagship brand 'BIBA' is a 'category creator' in the women's Indian wear segment. The company develops, designs, sources, markets and sells a wide portfolio of Indian wear for women and girls across multiple brands. It also offers consumers a range of products across jewellery, footwear, wallets and fragrances.
JM Financial, Ambit, Equirus Capital, DAM Capital Advisors and HSBC Securities and Capital Markets (India) are the book running lead managers to the issue.