Talks with promoters to buy stake in Fab India, another Tata airline – report

Tata Group in talks with Fabindia: You must have heard about the famous ethnic wear brand Fab India and here is a big news related to it. There are reports that the group and the company are in talks to buy Tata Group’s Fab India. The Tata Group is in talks with Fab India for the acquisition and there are indications that the price may be lower than the initial price or initial estimate of $2.5 billion.

Tata Group talks with Fabindia’s promoters and stakeholders!

According to a Hindu Business Line report, discussions with the promoters and stakeholders of Tata Group’s ethnic apparel business Fabindia are on and a major announcement may be made soon regarding the completion of the purchase. The report also indicated that ongoing talks could lead to a deal lower than the initial estimate of $2.5 billion. Fabindia’s plans to launch an IPO could not be completed.

If the deal goes through, the company will further strengthen Tata’s portfolio.

If the deal goes through, it will be a major value addition for the Tata Group in its portfolio and could be a lucrative deal, especially in the ethnic wear segment. The brand, along with Westside, Judio and Yu, brands under Tata’s retail arm Trent, will further strengthen its portfolio. However, neither the Tata Group nor Trent have responded to queries in this regard and have refused to comment on the matter according to media reports. While Fabindia’s spokesperson has denied any such talks at present. ABP News also does not confirm this news.

Fabindia is facing losses.

Earlier this year, Fabindia sold its subsidiary Organic India to Tata Consumer Products for an enterprise value of Rs 1900 crore. The reason behind taking this decision was that the company had canceled its Rs 4,000 crore IPO last year following volatile market conditions. However, there are some concerns regarding Fab India as while revenues may grow by 21% to Rs 1,668 crore in FY23 – the company has been running losses for the past three years.

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