Aditya Birla Fashion and Retail (ABFRL) announced that its board has authorized the offering of equity shares through qualified institutions placement (QIP) up to Rs 2,500 crore and up to Rs 2,379 crore in preferential issuance. Pilani Investment and Industries Corporation will get 4,08,72,580 equity shares from the business at a preferential issue price of Rs 317.45 apiece, totaling up to Rs 1,297.50 crore under the promoter/promoter group category.
Additionally, the ABFRL board has authorized the calling of an extraordinary general meeting for February 13, 2025, in order to approve the 2,378.75 crore in financing. Additionally, the business stated that the board “approved the issuance of equity shares by way of QIP, for an aggregate amount not exceeding Rs 2,500 crore.”
This is in accordance with a previous permission given by the company’s shareholders at the ABFRL annual general meeting on September 19, 2024. “The board of ABFRL in its meeting today approved raising of USD 500 million (over Rs 4,320.44 crore) through a combination of preferential issuance and QIP of equity shares,” the business stated in a statement.
The firm claims that this capital raise is a significant step toward the company’s planned vertical demerger into two independently listed companies. The company anticipates finishing this procedure by the end of this fiscal year. It is demerging the Madura Fashion & Lifestyle (MFL) business from ABFRL into a newly incorporated corporation Aditya Birla Lifestyle Brands Ltd (ABLBL).
About the Company – ABFRL
A major force in Indian fashion, Aditya Birla Fashion and Retail Ltd. (ABFRL), a division of the Aditya Birla Group, offers a wide range of high-end labels, including Louis Philippe, Van Heusen, and Pantaloons, as well as a significant presence in ethnic and global fashion.
A large-cap business with a market valuation of Rs 29,619.34 crore, Aditya Birla Fashion and Retail Ltd. was founded in 2007 and operates in the retail industry. The primary product/revenue segments of Aditya Birla Fashion and Retail Ltd. for the fiscal year that ends on March 31, 2024, are apparel, homemart & accessories, commission, scrap, other operating revenue, export incentives, and other services.
