FabHotels IPO Approval from SEBI

FabHotels, a budget hospitality chain, has obtained the necessary approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). Based in Bengaluru, the company joins several others like Leap India, Turtlemint, Molbio, and Infra.Market that have also received the go-ahead for their IPOs.

As stated in SEBI’s latest announcement, Travelstack Tech has been granted the observation letter from the regulator, enabling the company to advance with its planned public issue. The Goldman Sachs-backed entity filed its draft red herring prospectus (DRHP) in December of the previous year.

Details of the IPO

According to the DRHP, the IPO will feature a fresh issue of equity shares valued at Rs 250 crore, alongside an offer for sale (OFS) of up to 2.68 crore equity shares from existing shareholders. This OFS segment will include partial stakes being sold by several early backers such as Accel, Goldman Sachs, Qualcomm, and angel investor Anupam Mittal. Founders Vaibhav Aggarwal and Adarsh Manpuria are also anticipated to sell a part of their stakes in this offer for sale.

Capital Utilisation Plans

Through the issuance of new shares, FabHotels aims to generate capital mainly for working capital needs, repaying certain debts, and general corporate uses. The management of the IPO will be overseen by Motilal Oswal, IIFL Capital, and Nuvama, while MUFG Intime will serve as the registrar.

Stakeholder Information

As outlined in the DRHP, Accel India is identified as the largest external shareholder, holding a 21.75% stake, with Qualcomm Asia owning 8%. Additionally, Vaibhav Aggarwal possesses a 19.20% share of the 12-year-old enterprise.

Company Operations and Financials

Founded in 2014 by Aggarwal and Manpuria, FabHotels manages over 1,300 properties throughout more than 50 major cities in India, including Mumbai, NCR, Bengaluru, and Goa. According to the DRHP, FabHotels reported operational revenue of Rs 400 crore in the initial half of the current fiscal year (H1 FY26), with net profits amounting to Rs 32 crore during the six-month period concluding in September 2025.