Aditya Birla Fashion and Retail Limited (ABFRL) approves Rs 2,379 crore preferential share issue

Aditya Birla Fashion and Retail Limited has moved to approve a share issue worth approximately Rs 2,379 crore on a preferential issue basis to both qualified institutional buyers and promoters in order to raise funds. 

The business’ board of directors approved the share issue on January 15, ET Markets reported. Aditya Birla Fashion and Retail Limited has approved the issuance of up to 4.09 crore equity shares, priced at Rs 317.45 per share. 

The promoter group will have an aggregate consideration of up to Rs 1,297.5 crore. Following the fund raising, Pilani Investment and Industries will see its stake in ABFRL from 0.37% to 3.9%, the Economic Times reported. 

As part of the issue, qualified institutional buyers will have access to equity fundraising of Rs 1,081.25 crore with a share price of Rs 272.37 per piece. Participation in the fundraising round is expected from buyers including Fidelity Blue Chip Growth Fund and FIAM Target Date Blue Chip Growth Commingled Pool among others. The announcement follows ABFRL’s decision last year to demerge its Madura business into a separate listed entity.