Capital markets regulator Sebi has kept in "abeyance" the proposed initial share sale of ethnic wear fashion label Biba Fashion.
The company, which is backed by Warburg Pincus and Faering Capital, had filed preliminary papers with Sebi on April 12 to raise funds through an initial public offering (IPO).
Without disclosing the reason, Sebi said "issuance of observations (has been) kept in abeyance" with regard to the IPO of Biba Fashion, an update on the regulator's website showed. The issuance of observations by Sebi implies its go-ahead for an IPO. Sebi usually gives its observations on IPO papers in 30 days.
Going by the draft papers, the proposed IPO comprises fresh issuance of equity shares worth Rs 90 crore and an offer for sale (OFS) of 2.77 crore equity shares by the promoter and existing investors.
As a part of the OFS, promoter Meena Bindra and private equity investors Warburg Pincus-backed Highdell Investment and Faering Capital India Evolving Fund are proposing to offload shares.
The company plans to use proceeds from the fresh issuance of equity shares towards debt payment and for general corporate purposes.
Launched in 1986, the company's flagship brand 'BIBA' is a 'category creator' in the women's Indian wear segment. The company develops, designs, sources, markets, and sells a wide portfolio of Indian wear for women and girls across multiple brands. It also offers consumers a range of products across jewelry, footwear, wallets, and fragrances.
JM Financial, Ambit, Equirus Capital, DAM Capital Advisors, and HSBC Securities and Capital Markets (India) are the book-running lead managers to the issue.