Ethnic wear brand Libas targets IPO by early next fiscal as it steps up store push

Ethnic wear brand Libas is aiming for a public listing by early next fiscal year as it accelerates store expansion plans, although market volatility could delay the offering by a few months, a top executive told Reuters.

Market sentiment in India has weakened in recent months due to geopolitical shocks, renewed U.S. tariff pressures and record foreign investor outflows, weighing on equity valuations.

"If markets don't allow and if (Middle East) tensions don't reduce, then it probably will be delayed by a few months or so," CEO Sidhant Keshwani said.

Libas is also weighing a private equity round and has "a decent amount of runway," he added, without elaborating. It raised Rs 150 crore at an undisclosed valuation in 2024.

India's $1.06 trillion retail sector is set to nearly double by 2030, driven by a growing middle class and attracting brands across segments including beauty and fast food.

Libas runs around 50 stores across more than 15 cities in India and plans to add at least 70 outlets annually over the next two years, taking the total to more than 200.

Its revenue has grown at an average annual rate of 30%-35% over the last few years and is expected to have exceeded Rs 700 crore for the financial year ended March 31, up roughly 30% from a year earlier.

The company, which competes with brands including Biba and Aurelia, also aims to open stores in the United Arab Emirates and the United States over the next one to two years and is taking a wait-and-watch approach to international expansion due to the Middle East crisis.

The U.S.-Iran war has made companies more cautious about expansion and costs. Libas has so far absorbed higher raw material and freight costs rather than passing them on to customers, but may raise prices gradually if pressures persist for a few months, Keshwani said.