Leading menswear fashion brand Barcelona’s owner Stitched Textiles has decided to withdraw its Rs. 200 crore-initial public offering (IPO).
The company, operating 85 stores in franchisee model in more than 50 cities across India, had filed the Draft Red Herring Prospectus (DRHP) for the proposed IPO on 17 June with the Securities and Exchange Board of India (Sebi).
Earlier this year, another textile-based company, Nandan Terry, part of the Chiripal Group, withdrew their proposed IPOs.
Jaimin Gupta, MD, Stitched Textiles, told Apparel Resources, “We are in touch with private equity investors and at the same time market conditions are not enthusiastic for IPO,and so we decided to withdraw the IPO.”
He further added that the company will manage a reasonable investment from private equity investors.
The IPO of Stitched Textiles was slated to be entirely a fresh issue of equity shares. Proceeds of the issue were to be used for expansion of the company’s retail network by launching exclusive brand outlets, enhancing the visibility and awareness of its brand for funding working capital requirements and general corporate proposals.
The company, incorporated in 2015, also deals in suiting and shirting fabrics.
