Apparel retailer Fabindia on Monday said it has withdrawn its 40 billion rupee ($482.4 million) initial public offering amid rough market conditions, becoming the latest company to scrap listing plans as interest rate worries pressure stock markets.
India's benchmark Nifty 50 stock index is down over 4% so far this year on worries that major central banks, including the U.S. Federal Reserve, will prolong a high interest rate regime due to a persistent rise in inflation.
Fabindia's listed rivals Vedant Fashions , Aditya Birla Fashion and Retail and Arvind Fashions are down 14%-21% this year.
"The decision to withdraw was taken as the current market conditions were not seen to be conducive for listing," a Fabindia spokesperson said in a statement.
Fabindia had planned a fresh issue of shares worth 5 billion rupees and a sale of up to 25.1 million in existing shareholders' stock. It intended to use the proceeds to repay debt and redeem non-convertible debentures.
"The withdrawal ... will allow Fabindia to explore other options of liquidity. The company may reconsider filing an IPO in the future, depending on its need for growth capital and the market conditions," the company said.
Jewellery retailer Joyalukkas, e-commerce firm Snapdeal and wearable electronics company boAt have all pulled their IPOs due to uncertain market conditions.
Sixty-two-year-old Fabindia, popular for its sustainable and traditional Indian wear, also said that several global ESG-focused funds had expressed keenness to invest in the company. It did not provide additional details.