U.S. luxury watchmaker Fossil Group Inc. is reportedly considering an initial public offering (IPO) of its Indian subsidiary Fossil India Pvt. to capitalize on the booming IPO market in India. This is reported by Bloomberg. After the news broke, the company’s share price rose 44 percent on Wednesday morning.
The report cites people familiar with the matter. Accordingly, the US company is in talks with banks with the aim of raising around 300 to 400 million US dollars (around 256.39 to 341.85 million euros) by placing up to 25 percent of the shares in Fossil India. According to available documents, Fossil India achieved a net profit of 704 million Indian rupees (around 6.84 million euros) on sales of 8.68 billion rupees in the financial year ended March 31, 2024.
Discussions regarding the final terms of the IPO are still ongoing. The scope and timing of the offer could therefore still change. Investors and market observers are closely following how Fossil Group will strategically position its Indian subsidiary in the context of the growing Indian luxury goods market.
This idea is part of a growing trend in which multinational corporations are listing their Indian subsidiaries in response to increased demand from investors. A prominent example of this is the Hyundai Motor Co. IPO in October last year, which raised $3.3 billion. The recent IPO of LG Electronics Inc. with a volume of $1.3 billion also underlines this trend. Other companies that have already taken or plan to take similar steps include Carraro SpA and Tenneco Group.
According to information on Fossil Group’s website, the company manages a portfolio of lifestyle accessories. These include own brands such as Fossil, Michele and Skagen as well as licensed brands such as Michael Kors, Diesel and Tory Burch.
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