Regarding Biba Fashion’s initial public offering, Sebi said that the “issuance of observations has been deferred” without providing an explanation. The business, which is sponsored by Warburg Pincus and Faering Capital, submitted preliminary paperwork to Sebi on April 12 to seek capital through an initial public offering.
The Securities and Exchange Board of India (Sebi) has halted the clearance process for Biba Fashion, initial public offering (IPO), according to a Monday update on the website of the market regulator. However, the Securities and Exchange Board of India (Sebi) did not provide any more clarification.
On the 12th of April, the business, which is backed by Warburg Pincus and Faering Capital, filed preliminary paperwork with Sebi in order to seek capital via an initial public offering.
An update that was published on Monday on the website of the regulatory agency said that “issuance of observations (has been) placed in abeyance” in relation to the initial public offering (IPO) of Biba Fashion. Sebi did not reveal the rationale for this decision.
It may be inferred that the Sebi has given its approval for an initial public offering after it has issued remarks. In most cases, the observations of Sebi on IPO documents are provided within a month’s time.
According to the draft red herring prospectus, the initial public offering (IPO) would consist of a new issue of equity shares with a value of 90 crores as well as an offer for sale (OFS) of 2.77 crores (27,762,010) equity shares by the promoter and existing investors.
Meena Bindra, who is the promoter of the company, together with private equity investors Warburg Pincus-backed Highdell Investment and Faering Capital India Evolving Fund, have proposed selling their shares as part of the OFS.
The new issue of equity shares will result in the firm receiving the cash that will be used for the payment of debt as well as for general corporate purposes.
The company has stated that it intends to put the net proceeds from the fresh issue toward the funding of repayment and/or prepayment of certain borrowings that the company has taken out, the total amount of which is estimated to be 70 crores, and the remaining amount will be put toward general corporate purposes.
The book-running lead managers for the issue are HSBC Securities and Capital Markets (India), Ambit, Equirus Capital, DAM Capital Advisors, and JM Financial.
On August 5th, the information was brought up to date. It may be inferred that the Sebi has given its approval for an initial public offering after it has issued remarks.
In most cases, the observations of Sebi on IPO documents are provided within a month’s time. According to the draft documents, the initial public offering (IPO) that is being planned would include the new issuing of equity shares with a value of Rs 90 crore, as well as an offer for sale (OFS) of 2.77 crore equity shares by the promoter and existing investors.
The company’s main brand, BIBA, introduced in 1986, is a “category originator” in the women’s Indian wear area. The firm produces, designs, sources, promotes, and distributes an extensive assortment of Indian clothing for women and girls under several labels. In addition, it gives users a variety of jewelry, footwear, wallets, and perfumes.
