FabIndia IPO: All Eyes Are On India’s First ESG IPO

FabIndia IPO: All eyes are on India’s first ESG IPO, a big announcement for farmers and artisans.

The IPO of ethnic wear brand FabIndia has received SEBI approval. Although no fixed date has been given by the company to open this IPO, it is expected to be released soon.

Let us inform you that SEBI had given the green signal to the proposed IPO of Rs 4000 crores on 30 April 2022. The company plans to issue fresh shares worth Rs 500 crore.

Big announcement for artisans.

Fabindia has announced to gift about 7.75 lakh shares to artisans and farmers under this issue.

Let us tell you that the number of artisans and farmers associated with Fabindia is about 50 thousand, which are spread in 6 states of India.

The basis for allotment of shares will be decided at the final stage of IPO filing. This step of Fabindia is believed to be helpful in serving the far-reaching interests of Indian artisans and farmers.

The company’s promoters have decided to give 7.75 lakh shares to them so that there can be inclusive growth of the artisans and farmer community.

The company intends to transfer 400,000 and 375,080 equity shares to farmers and artisans respectively. Fabindia has been working with traditional Indian artisans for a long time.

The company has given Indian artisans a platform to showcase their crafts and designs.

Vini Singh, Managing Director, Fabindia, says that striking the right balance between social purpose and profit should be the main focus of a company’s charter.

This is an important dimension to be a responsible ‘Corporate Citizen’.

Efforts to save the environment.

Fabindia’s technology is eco-friendly. Fabindia’s clothing contains 95-98 percent natural ingredients. Even coconuts and shells are used in its clothes.

For the furniture, the company uses almost completely natural materials including ply boards.

The company also ensures that carbon production is minimized in its manufacturing operations by using traditional production methods.