Biba, India’s leading ethnic wear brand for women, has filed its preliminary initial public offering (IPO) papers with market regulator SEBI. The brand is all geared up for its IPO, which will include a fresh issuance of shares and an offer for sale.
The IPO will comprise a fresh issuance of Rs. 90 crore worth equity shares as well as an offer for sale of Rs. 2.77 crore equity shares.
As per a report published in Economic Times, a leading business daily, the funds raised by IPO will be used by the brand to repay debit and also for other corporate purposes.
The equity shares for sale will be sold by Biba’s promoter and existing investors, according to the business’ draft red herring prospectus. The business’ promoter Meena Bindra will offload Rs. 37.52 lakh equity shares in the offer for sale.
The company in its DRHP said, “While our operations had significantly slowed down during early 2020 and we have almost resumed full normalcy with requisite precautions, the actual impact of Covid-19 pandemic on our financial condition remains uncertain…”
The company further added that we have since seen a recovery in our operations and witnessed a 76.05 per cent growth in sales from online channels between financial years 2020 and 2021, accelerated by the growth in the number of online shoppers in India,” it added.
Currently Biba is backed by Warburg Pincus and Faering Capital. The business was established in 1986 as a women’s ready-to-wear brand and now retails a wide range of ethnic, fusion and casual wear as well as girls’ wear, accessories and homeware items, amongst others.
