Watchmaker Fossil eyes IPO for Indian unit

Luxury watchmaker Fossil Group Inc. is reportedly considering an Initial Public Offering (IPO) for its Indian arm, Fossil India Pvt., aiming to capitalise on the country's booming market for new listings, according to a Bloomberg report. Following the news, the company's shares jumped 44 percent in Wednesday morning trading.

Quoting people familiar with the matter, the report added that the U.S.-based company is in discussions with bankers to raise an estimated 300 million dollars to 400 million dollars by offering a stake of up to 25 percent in its Indian unit. According to filings, Fossil India Pvt. generated a net income of 704 million Indian rupees and revenue of 8.68 billion Indian rupees (approximately 98 million dollars) during the fiscal year that ended March 31, 2024.

Fossil eyes IPO for its India unit

Discussions regarding the final terms of the IPO are still underway, meaning the size and timing of the offering may change. Investors and market observers will be watching closely to see how Fossil Group strategically positions its Indian subsidiary within the context of the country's luxury goods market and its projected growth.

The deliberation joins a growing trend of multinational corporations taking their Indian subsidiaries public amidst surging investor demand. This trend was highlighted by Hyundai Motor Co.'s 3.3 billion dollars debut last October and LG Electronics Inc.'s recent 1.3 billion dollars IPO. Other firms that have either listed or plan to list their Indian operations include Carraro SpA and Tenneco Group.

Based on the information available on Fossil Group website, the company manages a portfolio of lifestyle accessories that includes proprietary brands like Fossil, Michele, and Skagen, alongside licensed brands such as Michael Kors, Diesel, and Tory Burch.