Arvind Fashions to raise Rs 400 cr via rights, issue price lowered to Rs 100

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Arvind Fashions has revised the amount of capital it plans to raise via rights issue to about Rs 400 crore form nearly Rs 300 crore earlier.

In a regulatory filing on June 21, the apparel firm said the issue will open on June 29 and close on July 17.

Arvind Fashions also lowered the issue price to Rs 100 from Rs 150 per share earlier.

"The Board has approved the issue of up to 3,99,79,347 equity shares of face value of Rs. 4 each at an issue price of Rs. 100 per equity share (including a premium of Rs 96 per Rights Equity Share) aggregating up to Rs. 399.79 crore to all the existing equity shareholders of the company on the record date, March 18, 2020, on a rights basis," the firm informed bourses.

Speaking about the rights issue, Kulin Lalbhai, Director at Arvind Fashions Limited said, “With the opening up of the economy, our offline and online sales are seeing a growth momentum. The infusion of capital of about Rs. 399.79 crores through the Rights Issue will help the Company stabilise its operations and cash flow.”

Promoters of the company will fully subscribe to their rights entitlement and will reserve their right to subscribe to any additional equity shares in case the issue is under-subscribed, the company said.