The rise and rise of ESG that we have seen over the past few years is likely to continue in 2022. Inflows into ESG funds continued to grow in 2021, surpassing 2020’s total inflows of $51.1 billion before the end of Q3 in 2021. Current assessments estimate that there are more than $330 billion in assets under management in ESG funds, with the creation of more ESG funds expected in 2022.
The editorial team of FinanceIntellect.com spoke to investors across global financial markets – US, UK, HK & Singapore. Leading investment bankers and Investors actively investing in Indian IPOs gave a thumbs up to the upcoming FabIndia IPO. They labeled this as “India’s first ESG IPO” and are keen to subscribe it. Market sources said the Initial Public Offer (IPO) is expected to be worth around ₹4,000 crore.
“We are ESG in the way we operate in terms of connecting the artisans, the farmers” Mr. Gopal Mishra, Chief Operations Officer and Chief Financial Officer. FabIndia said in an interview with Bloomberg News earlier this week.
FabIndia Executive Vice Chairman William Nanda Bissell pointed to the New Delhi-based firm’s network of 40,000 artisans, spread across India’s villages and smaller towns, and said if FabIndia’s IPO is successful, it will serve as an example to other companies of how ESG is the wave of the future. “You can believe in it, and the markets will recognize that, and for me, it’s like an article of faith,” as reported in Bloomberg News.
Expansion plans
In the domestic market, FabIndia would focus will be on expanding omnichannel presence and direct-to-customer sales.
The Business Line had earlier reported Mr. Viney Singh, Managing Director, Fabindia Limited stating “Fabindia has plans to expand its physical retail network in new and existing markets. We are seeing tremendous business recovery across metros and tier-1,2, and 3 cities.”
“The growth being seen in tier-2 and tier-3 cities reflects the higher potential for expansion in the country. With a focus on franchisee model, Fabindia is looking to expand into these cities” he added.
The company’s history of employee ownership, dating back to 1998, is part of its commitment to ESG. Employees owned about 15% of the company as of September 30, the prospectus shows, and FabIndia has set aside slightly more than 0.5% of shares in the IPO for its artisan network, as reported in media.
The firm is working with Ernst & Young Global Ltd. to measure its carbon use overall, as well as its energy and water consumption.
Also read: FabIndia plans Rs 4,000 crore IPO; promoters to gift shares to artisans, farmers
