Dalal street: labels line up for fashion show on Dalal Street



Mumbai: D-Street is splashed with color this season as several high-end fashion brands including Manyavar, Fabindia and GoColours seek public announcements in a market that normally hosts companies such as consumer tech, finance or chemical products.

Biba Apparels is another exclusive fashion retailer looking to sell shares in an Initial Public Offering (IPO), and several of those labels have been in talks with several investment bankers, ET told. Almost all of these brands are backed by large private investors, including Warburg Pincus and Faering Capital.

Granted, July is set to be a busy month for IPOs on D-Street, with some estimates suggesting that companies such as Zomato, GR Infraprojects and Clean Science & Technology collectively raise at least Rs 24,000 crore in initial sales of shares. . Manyavar and Fabindia are planning IPOs that could rise between Rs 2,000 crore and Rs 2,500 crore. GoColours is likely to enter the market with an issue size of Rs 800-900 crore, according to several bankers. Biba is in the initial stages of talks for a public listing, bankers told ET.

Vedant Fashions, owner of Manyavar, and Go Fashion (India), which operates under the GoColours brand, have already hired investment bankers to lead their IPOs, one of the bankers said.

Robust economic trade

Fabindia, Manyavar and GoColours did not respond to requests sent by ET. Biba said “he has no such plans at the moment”. IPOs of most of these fashion brands will feature a mix of primary issues, expanding the post-listing equity base, and put-to-sell (OFS) offers from existing investors, including equity players. -investment. Kedaara Capital is one of the investors of Manyavar, while PremjiInvest and Lighthouse Funds are invested in Fabindia.

Warburg Pincus and Faering Capital have stakes in Biba Apparels, while Sequoia and ICICI Venture are major investors in Go Fashion.

In-store sales were affected by exclusive fashion retailers during the pandemic, but strong e-commerce activity and increased attention to casual wear helped protect these labels.

Recently, the management of

Fashion said the disruption caused by the pandemic has accelerated digital adoption among consumers, with e-commerce, hyperlocal and other digital channels gaining a larger share. “With low cash positions, declining profitability and debilitating working capital issues across categories, the second wave of lockdowns could prove fatal for many,” said Jay Gandhi, analyst at HDFC Securities. “The most affected will likely be department stores and ethnic clothing retailers who otherwise have poor cash flow coverage and deteriorating working capital.”


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