Home Fashion products sebi: Sebi suspends the IPO of Biba Fashion

sebi: Sebi suspends the IPO of Biba Fashion

Capital markets regulator Sebi has put plans for an initial sale of shares in ethnic clothing brand Biba Fashion on hold. However, the Securities and Exchange Board of India (Sebi) did not elaborate further.

The company, which is backed by Warburg Pincus and Faering Capital, had filed preliminary documents with Sebi on April 12 to raise funds through an initial public offering (IPO).

Without disclosing the reason, Sebi said the “publication of observations (has been) kept pending” regarding Biba Fashion’s IPO, an update on the regulator’s website showed on Monday.

The information was updated on August 5. The publication of observations by Sebi implies its green light for an IPO. Sebi typically provides comments on IPO documents within 30 days.

According to the draft documents, the proposed IPO includes a new issue of capital shares worth Rs 90 crore and an offer for sale (OFS) of 2.77 crore of capital shares by the promoter and existing investors.

As part of the SFO, promoter Meena Bindra and private equity investors backed by Warburg Pincus Highdell Investment and Faering Capital India Evolving Fund are offering to offload the shares.

The company plans to use the proceeds from the new share issue for the payment of debt and for general corporate purposes.

Launched in 1986, the company’s flagship brand, “BIBA”, is a “category builder” in the Indian clothing segment for women. The company develops, designs, sources, markets and sells a broad portfolio of Indian clothing for women and girls across multiple brands. It also offers consumers a range of products including jewelry, shoes, wallets and fragrances.

Ambit, Equirus Capital, DAM Capital Advisors and HSBC Securities and Capital Markets (India) are the lead managers of the issue.