FabIndia, a retailer of handcrafted products, is looking to raise as much as $500 million through an initial public offering. The company is planning to file its preliminary documents for the IPO with the market regulator soon, Bloomberg reported.

FabIndia is backed by investors like PremjiInvest, a private equity fund by Wipro founder Azim Premji, and Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani.

Its IPO will largely see investors selling their existing shares, said the report, citing people familiar with the matter, who also added that the company is likely to submit the draft red herring prospectus as soon as early next year.

However, the size and timing of the IPO could change, said the people mentioned in the report, as the discussions are still on and a final decision is yet to be taken.

Earlier, it was reported that the company was in talks with investment banks like ICICI Securities, SBI Capital Markets and JPMorgan to manage its IPO.

The Delhi-based company will seek a valuation of about $2 billion and is likely to sell 25-30 percent stake through the IPO, according to reports.

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A Fabindia Group spokesperson had told PTI earlier, "The company considers various capital-related options from time to time. We also take advice from our bankers. At the right stage, we will discuss any plans with the board of directors and be guided by their decision."

Established in 1960 by John Bissell, FabIndia sources its products from villages of India and showcases handloom textiles and furniture to the world. According to the company website, FabIndia currently connects more than 55,000 rural producers to the urban markets. The company also runs its own school with nearly 500 students.

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First Published:Dec 8, 2021 12:53 PM IST