Aditya Birla Fashion and Retail Ltd on January 15 said its board approved a preferential issue of up to 4.08 crore equity shares to promoters at Rs 317.45 apiece and up to 3.96 crore shares to institutional buyers at Rs 272.37 apiece, totaling around Rs 2,378.75 crore, pending shareholder approval on February 13, 2025.
The firm's board also approved raising up to Rs 2,500 crore through Qualified Institutions Placement.
At 10:30 am on January 15, ABFRL shares on NSE were trading flat at Rs 270 apiece. The company will be raising from promoter group at 18% premium to current market price of the stock.
ABFRL said it will issue shares worth Rs 1,081 crore to Fidelity Funds at Rs 272.37 apiece.
"In furtherance to the approval granted by the Shareholders of the Company at the AGM held on September 19, 2024, kindly note that the Board of Directors of the Company at its meeting held today have approved issuance of equity shares by way of Qualified Institutions Placement, for an aggregate amount not exceeding Rs 2,500 crore in accordance with the applicable laws including the SEBI ICDR Regulations and the Companies Act, 2013, subject to receipt of necessary regulatory approvals, as may be required," said ABFRL in a stock exchange filing.
The Birla family's stake in ABFRL will increase to 52.78% from 49.25% after the deal, per a Reuters calculation based on latest exchange data, while Fidelity will get a fresh 3.45% stake.
ABFRL will hold an extraordinary general meeting on Feb. 13 to decide on the investment proposals, it said.
The fundraise comes ahead of ABFRL spinning off its top money-making unit, Madura Fashion and Lifestyle, into a separate listed entity that it said would improve ABFRL's financial position.
Madura Fashion, which houses the 'Peter England', 'Louis Phillippe' and 'Van Heusen' brands among others, accounts for roughly 70% of ABFRL's revenue.
With inputs from Reuters
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