Biba Fashion Files For IPO; Warburg Pincus, Faering Capital To Divest Stakes

Biba Fashion Pvt. Ltd., an ethnic wear label backed by Warburg Pincus and Faering Capital, has filed preliminary papers with the markets regulator to raise funds via an initial public offering.

The IPO comprises fresh stock worth Rs 90 crore and an offer for sale of 2.77 crore equity shares by the promoter and existing investors, according to the draft red herring prospectus filed with the Securities and Exchange Board of India. 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 shares, respectively.

Funds raised via issuance of fresh stock will be used to repay debt and for general corporate purpose.

JM Financial, Ambit Capital, Equirus Capital, DAM Capital Advisors and HSBC Securities and Capital Markets (India) are the book-running lead managers to the issue.

Launched in 1986, Biba Fashion develops, designs, sources, markets and sells a wide portfolio of Indian wear for women and girls across multiple brands as well as jewelery, footwear, wallets and fragrances for them.

According to a Technopak report, the women’s apparel market in India was estimated at $ 21.8 billion – or 36% of India’s apparel market – as of 2019-20. It is expected to outgrow other segments – such as menswear and kidswear – to reach $ 33.8 billion by FY25.

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