Fossil Group Eyes $400 Million IPO for Indian Subsidiary
Fossil Group Inc. is exploring an initial public offering (IPO) for its Indian arm, potentially raising up to $400 million by selling up to 25% stake in Fossil India Pvt. The company is in discussions with bankers regarding the IPO. Fossil India reported revenue of ₹8.68 billion ($98 million) and net income of ₹704 million for FY 2024. This move follows successful IPOs by other multinational companies' Indian units, such as Hyundai Motor Co. and LG Electronics Inc., highlighting the attractiveness of the Indian market.
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US luxury watchmaker Fossil Group Inc. is considering an initial public offering (IPO) for its Indian arm, potentially raising up to $400 million. This move aligns with a growing trend of multinational companies listing their Indian subsidiaries on the country's stock exchanges.
IPO Details
- Potential Fundraising: $300-400 million
- Stake to be Sold: Up to 25% of Fossil India Pvt.
- Current Stage: Discussions with bankers ongoing
Fossil India's Financial Performance
| Metric | FY 2024 (ended March 31) |
|---|---|
| Revenue | ₹8.68 billion ($98 million) |
| Net Income | ₹704 million |
Brand Portfolio
Fossil Group manages a diverse portfolio of lifestyle accessories brands, including:
- Fossil
- Michele
- Skagen
- Licensed brands:
- Armani Exchange
- Diesel
- Michael Kors
Market Context
This potential IPO follows recent successful listings by other multinational companies' Indian units:
- Hyundai Motor Co.: $3.30 billion IPO
- LG Electronics Inc.: $1.30 billion IPO
These listings demonstrate the growing attractiveness of the Indian market for global companies seeking to capitalize on their local operations.
Analysis
The proposed IPO by Fossil Group for its Indian subsidiary reflects the company's confidence in its Indian operations and the broader Indian market. With a revenue of ₹8.68 billion and a net income of ₹704 million in the last fiscal year, Fossil India has established a significant presence in the country's luxury accessories market.
The decision to potentially list up to 25% of the Indian subsidiary aligns with Fossil Group's strategy to unlock value from its global operations while maintaining majority control. This move could provide the company with additional capital for expansion in the Indian market, while also offering Indian investors an opportunity to participate in the company's growth.
As discussions with bankers are still ongoing, the final terms of the IPO may change. Investors and market watchers will be keen to see how Fossil Group positions its Indian arm in the context of the broader luxury goods market in India and its growth prospects.
The success of recent IPOs by other multinational companies in India suggests a favorable environment for such listings. However, the final outcome will depend on various factors, including market conditions, pricing, and investor appetite for luxury goods stocks in the current economic climate.
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