Ethnic wear fashion brand Biba Apparels has filed its draft red herring prospectus with market regulator Sebi to mop up funds through an initial public offering (IPO). Started by Meena Bindra in 1988, Biba is backed by Warburg Pincus and Faering Capital.
The fashion label’s IPO comprises fresh issuance of equity shares worth Rs 90 crore and an offer for sale (OFS) of 2.77 crore equity shares by promoter and existing investors, as per the draft red herring prospectus (DRHP) filed with Sebi.
As a part of the OFS, promoter 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 scrips, respectively.
Where would the funds be used?
The funds generated through the fresh issuance of equity shares will be used to repay debt and for general corporate purposes.
About the brand
Biba has a presence of over 285 stores in 120 cities and a distribution system of 285 exclusive stores, 400 touch points in Multi Brand Outlets and leading E-Commerce platforms. It recently acquired a substantial minority stake in the designer label Anju Modi’s fashion line.
Other prominent names that the label have collaborated with include stalwarts like Rohit Bal and Manish Arora who brought their own expertise to create iconic fashion lines for us.
According to a Technopak Report, the women’s apparel market in India was estimated at $21.8 billion, or 36 per cent of the total apparel market in the country, as of financial year 2020, and is expected to outgrow other major market segments, such as menswear and kids wear, and may reach $33.8 billion by financial year 2025.
