Stitched Textiles scraps Rs 200-cr IPO plan; withdraws draft papers

Stitched Textiles, which owns leading men's wear fashion brand "Barcelona", has decided to withdraw its Rs 200 crore-Initial Public Offering (IPO).

The IPO was slated to be entirely a fresh issue of equity shares. Proceeds of the issue were to be used for expansion of the company's retail network by launching exclusive brand outlets, enhancing the visibility and awareness of its brand for funding working capital requirements and general corporate proposals.

The company had filed the Draft Red Herring Prospectus (DRHP) for the proposed IPO on June 17 with the Securities and Exchange Board of India (Sebi).

However, the draft offer documents for the IPO were withdrawn on August 16 and the reasons for the withdrawal have not been disclosed, an update with the markets regulator showed on Tuesday.

Incorporated in 2015, Stitched Textiles is mainly into men's wear and deals in suiting and shirting fabrics. It operates around 85 stores in franchisee model in more than 50 cities in India, as of now. It offers its products under the brand 'Barcelona'.

Earlier this year, Nandan Terry, part of the Chiripal group, and Uma Converter withdrew their proposed IPOs.