Biba Apparels, which is backed by Warburg Pincus and Faering Capital, has filed its draft red herring prospectus with market regulator Sebi and joined the Indian fashion label listing party, multiple industry sources in the know told Moneycontrol.

Share Market Live

NSE

On January 10, 2022, Moneycontrol was the first to report that the Delhi-based ladies' ethnic wear fashion label had appointed four investment bankers and was planning to raise Rs 1,500 crore to Rs 2,000 crore via an IPO and provide a partial exit to its investors.

"Biba has filed its draft papers and is looking to raise around Rs 1,500 crore," one of the persons cited above told Moneycontrol.

A second person confirmed the filing and added that the secondary issue of shares is around Rs 1,400 crore and the rest is a small primary component.

Also Read |

Should you buy, hold or sell TCS shares after IT major kicks off earnings season? Here's what brokerages say

Investment banks JM Financial, HSBC Securities, DAM Capital, Equirus Capital and Ambit Capital are working on the IPO, added a third person.

All the three persons cited above spoke to Moneycontrol on condition of anonymity.

Moneycontrol could not connect with Biba and the i-bankers for immediate comment. This article will be updated once we hear from them.

In the past few months, a spate of domestic fashion labels backed by private equity firms has made a beeline for Dalal Street.

Sequoia Capital-backed women's bottom-wear brand Go Colours raised Rs 1,014 crore via its IPO and made a stellar debut on the bourses in November, listing at a 90 percent premium to its issue price.

Also Read | Top stock tips by Sudarshan Sukhani, Mitessh Thakkar: Birlasoft, PVR, HCL Tech and more

Others like Manyavar owner Vedant Fashions (backed by Kedaara Capital) got listed on February 16. FabIndia (backed by PremjiInvest & Lighthouse Funds) filed papers for an IPO in January.

Aditya Birla Fashion & Retail and TCNS Clothing are other key listed players in the apparel and clothing segment.

Back in December 2013, in what was then the biggest private equity investment in the Indian ethnic wear market, Warburg Pincus and Faering Capital pumped in Rs 300 crore in Biba Apparels, giving an exit to Future Lifestyle Fashions.

THE STORY OF BIBA

Designer-turned-entrepreneur Meena Bindra founded Biba (a synonym for pretty women in Punjabi) Apparels Private Ltd in 1988.

BIBA has entered the jewellery and footwear segments and has also made a foray into the fragrance vertical with the launch of a brand called Spelle.

According to the Moneycontrol report of January 10 cited above, the brand was available across more than 120 cities, had opened its 300th store in Jaipur and was present in major retail chains like Shopper's Stop, Lifestyle, Pantaloons, and Central.

In 2014, BIBA bought a 26.66 percent stake from couturier Anju Modi in her company Anjuman Brand Designs.

Also Read | Maruti Suzuki gains after co says fire incident will not affect production ops

In an interview with the Financial Express dated November 12th, 2021 (when the firm had 296 stores), Siddharath Bindra, the MD of Biba Apparels said the firm would be looking at tier ii and tier iii cities for expansion and planned “to add 200 stores over the next three years”.

He added, “the share of e-commerce sales has gone up by 20-25 percent in the past 17-18 months. We expect online sales to go up to 30-35 percent in the next two to three years. We have sharpened our focus on e-commerce as it provides the convenience of contactless delivery.”

Catch up on all LIVE stock market updates here.