The ethnic clothing store chain, Fabindia Overseas Private Limited, has hired five investment banks ahead of its initial public offering (IPO). The five banks – ICICI Securities, SBI Capital Markets, JP Morgan, Credit Suisse and Nomura – have been appointed to help the company raise between $750 million and $1 billion.

Fabindia is expected to submit its draft Red Herring Prospectus (DRHP) to market regulator Sebi by November, according to a report by Hindustan Times. The company is expected to sell about 25-30% of its stake to the public “in a mix of primary and secondary stock sales”, according to an unnamed source quoted by HT.

While the issue size is expected to be $500 million, the IPO valuation has yet to be decided by the company. However, according to media reports, Fabindia is eyeing an IPO at a $2 billion valuation.

During the IPO, PremjiInvest, an investor in Fabindia, is expected to sell part of its stake in the company. The company is backed by a battery of investors, including Lighthouse Funds (funds managed by Axis Alternative Asset Management), Kotak Securities, Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani.

So far, 38 companies – the highest of any year in a decade – have launched their IPOs this year, raising more than Rs 60,000 crore.

In fiscal 2020, Fabindia’s sales increased by 2.3% to Rs 1,508 crore from Rs 1,474 crore in the previous year. The company did not disclose its revenue for fiscal year 21 – when the COVID-19 pandemic hit the country.

Fabindia has 311 stores in 118 cities nationwide and 14 international stores. The company sells clothing, home furnishings, furniture, gifts, jewelry, organic foods and personal care products.