The company will raise $275 million through preferential issuance ($150 million from promoters, $125 million from Fidelity) and $225 million through QIP…
Aditya Birla Fashion and Retail Limited (ABFRL) has announced a $500 million equity raise through a combination of preferential issuance and Qualified Institutional Placement (QIP). The board approved the fundraising in its meeting today.
The fundraising comes ahead of ABFRL’s planned vertical demerger into two separately listed entities, expected to be completed by the end of the financial year.
The preferential issuance will raise $275 million, with $150 million invested by the promoter group and $125 million by Fidelity Investments. The promoter’s contribution is priced at a 17.5% premium over the previous day’s closing price. Fidelity Investments will participate through its funds, including Fidelity Blue Chip Growth Fund and related entities.
In addition, the company plans to raise $225 million through QIP, bringing the total equity raise to $500 million.
This move aims to deleverage the company and provide capital for pursuing growth opportunities.
The shareholder meeting to approve the preferential issuance is scheduled for February 13, 2025. Pricing for the issuance will be determined based on January 14, 2025, as the relevant date. Both the preferential issuance and QIP are subject to regulatory and customary approvals.
About ABFRL
ABFRL is part of the Aditya Birla Group and operates a network of 4,538 stores, along with approximately 37,952 multi-brand outlets and 9,047 points of sale in department stores across India. It manages leading brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter England, as well as value retail formats and international brand partnerships. Its portfolio also includes ethnic wear brands and a digital-first initiative under TMRW.
