Indian retailer Fabindia withdraws $482 million IPO

Traditional Indian fashion retailer Fabindia has withdrawn its plans for a $482 million initial public offering, citing rough market conditions.

The company said that it may revisit the IPO plans in the future, and hinted that a number of ESG-oriented funds have expressed interest in investing.

Fabindia initially announced its plans to go public in January, saying that it would raise 40 billion rupees by selling 5 billion rupees worth of stock and up to 25.1 million in existing shareholders' stock in the IPO. It said it would use the proceeds to repay debt and redeem non-convertible debentures.

Fabindia is the latest Indian company to withdraw its IPO at an unstable time for India's Nifty 50 stock index. E-commerce firm Snapdeal, jewellery retailer Joyalukkas and wearable tech firm boAT have all pulled their IPOs in recent months.

India’s stock market is not the only one to be struggling with the current financial climate. Last week, US stocks recorded their worst weekly loss in two months amid heightened fears of inflation in the country.

Elsewhere on Friday, Joachim Nagel, president of the Bundesbank and a member of the European Central Bank’s governing council, warned that inflation would likely "remain at very high levels" which would cause the bank to further raise rates.

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