FabHotels Gets SEBI Nod for IPO Launch
The IPO will include a fresh issue of equity shares worth INR 250 crore and an offer for sale of up to 2.68 crore shares by existing investors.
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Budget hospitality chain FabHotels has received approval from the Securities and Exchange Board of India to move ahead with its initial public offering (IPO).
The development places the company among a group of firms, including Leap India, Turtlemint, Molbio Diagnostics, and Infra.Market, that have recently secured regulatory clearance.
According to SEBI’s update, FabHotels’ parent entity Travelstack Tech has received the observation letter required to proceed with the public issue. The company had filed its draft red herring prospectus in December last year.
The IPO will include a fresh issue of equity shares worth INR 250 crore and an offer for sale of up to 2.68 crore shares by existing investors.
Early backers such as Accel, Goldman Sachs, and Qualcomm, along with investor Anupam Mittal, are expected to partially sell their stakes. Founders Vaibhav Aggarwal and Adarsh Manpuria will also offload a portion of their holdings.
Proceeds from the fresh issue will be used for working capital, repayment of certain borrowings, and general corporate purposes.
The IPO will be managed by Motilal Oswal Financial Services, IIFL Capital, and Nuvama Wealth Management, with MUFG Intime India acting as registrar.
Founded in 2014, FabHotels operates over 1,300 properties across more than 50 Indian cities. It reported revenue of INR 400 crore and a net profit of INR 32 crore in the first half of FY26.
Budget hospitality chain FabHotels has received approval from the Securities and Exchange Board of India to move ahead with its initial public offering (IPO).
The development places the company among a group of firms, including Leap India, Turtlemint, Molbio Diagnostics, and Infra.Market, that have recently secured regulatory clearance.
According to SEBI’s update, FabHotels’ parent entity Travelstack Tech has received the observation letter required to proceed with the public issue. The company had filed its draft red herring prospectus in December last year.
The IPO will include a fresh issue of equity shares worth INR 250 crore and an offer for sale of up to 2.68 crore shares by existing investors.
Early backers such as Accel, Goldman Sachs, and Qualcomm, along with investor Anupam Mittal, are expected to partially sell their stakes. Founders Vaibhav Aggarwal and Adarsh Manpuria will also offload a portion of their holdings.
Proceeds from the fresh issue will be used for working capital, repayment of certain borrowings, and general corporate purposes.
The IPO will be managed by Motilal Oswal Financial Services, IIFL Capital, and Nuvama Wealth Management, with MUFG Intime India acting as registrar.
Founded in 2014, FabHotels operates over 1,300 properties across more than 50 Indian cities. It reported revenue of INR 400 crore and a net profit of INR 32 crore in the first half of FY26.
