U.S. luxury watchmaker Fossil Group is reportedly considering an initial public offering (IPO) for its Indian subsidiary, Fossil India Private Limited. The IPO could potentially raise between $300 million and $400 million. This move aligns with a growing trend of multinational corporations seeking to list their Indian operations to capitalize on strong investor demand in the South Asian market.
Sources familiar with the matter indicate that Fossil Group is in discussions with bankers to sell a stake of up to 25% in Fossil India Pvt. While deliberations are ongoing, the size and timing of the offering remain subject to change. A Fossil Group spokesperson declined to comment on the potential IPO.
The Indian market has seen a surge in IPO activity, with several multinational firms exploring public listings for their Indian units. Hyundai Motor Co. set a record with a $3.3 billion IPO last year, and LG Electronics Inc. recently completed a popular $1.3 billion IPO. Other companies, including Carraro SpA and Tenneco Group, have either listed or are planning to list their Indian operations.
Fossil India Private Limited, established in 2007, is an unlisted private company. It is classified as a private limited company and is located in Karnataka. As of March 31, 2024, Fossil India's operating revenue exceeded INR 500 crore. The company's EBITDA increased by 213.1%, and its net worth increased by 455.33% over the previous year.
Fossil Group manages a diverse portfolio of lifestyle accessories, including its namesake brand Fossil, Michele, and Skagen. It also has licensed brands such as Armani Exchange, Diesel, Emporio Armani, Kate Spade New York, Michael Kors, and Tory Burch. Fossil's e-commerce website, fossil.com, has 248 stores across the world, including Fossil India.
In the fiscal year ending March 31, 2024, Fossil India generated revenue of 8.68 billion rupees ($98 million) and net income of 704 million rupees.
Fossil Group, founded in 1984, is an American fashion design and manufacturer based in Richardson, Texas. The company's shares have surged 62.3% year-to-date, outperforming the industry's 12.5% decline. Fossil's strategic focus on strengthening its balance sheet, streamlining operations, and revitalizing its core watch business has enhanced financial flexibility and supports margin expansion.
The potential IPO of Fossil India aligns with a broader trend of companies tapping into India's growing economy and investor base. The Indian construction industry is experiencing substantial growth, and the capital goods sector is crucial for industrial and economic development. Furthermore, the Indian government is promoting sustainable energy through initiatives like green hydrogen production, which could present opportunities for Fossil India to leverage existing assets and collaborate on public-private partnerships.
