Tata Group in talks with Fabindia promoters for stake acquisition according to this media report

Tata Group in Talks With Fabindia: You must have heard about the famous brand of ethnic clothes Fab India and here is a big news related to it. There are reports that talks are going on between the group and the company to buy Fab India of Tata Group. Tata Group is in acquisition talks with Fab India and there are indications that its value may be lower than the initial valuation or the initial estimate of $2.5 billion.

Tata Group's discussion with Fabindia promoters and stakeholders!

According to the news of Hindu Business Line, discussions are going on with the promoters and stakeholders of Tata Group's ethnic apparel business company Fabindia and a big announcement related to the completion of this purchase can be made soon. It has also been informed in this report that in the ongoing discussions, a deal may be struck at a lower level than the earlier estimate of $2.5 billion. Fabindia's plan to launch an IPO could not be completed.

If the deal goes through, the company will further enrich Tata's portfolio.

If this deal goes through, it will be a major value addition for the Tata Group in its portfolio and can be a profitable deal, especially in the ethnic wear sector. This brand, along with Westside, Judio and Yu, the brands under Tata's retail arm Trent, will further enrich its portfolio. However, neither Tata Group nor Trent has responded to the questions asked in this regard and according to media reports, have refused to comment on it. Whereas Fabindia spokesperson has currently refused any such discussion. ABP News also does not confirm the 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 4000 crore IPO after last year's unstable market conditions. However, there are some worrying situations regarding Fab India because even though the revenue may have increased by 21 percent to Rs 1668 crore in FY 2023 – the company has been facing losses for the last three years.

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