Arvind Fashions Limited to raise up to Rs. 399.79 crore via Rights Issue

Arvind Fashions Limited ("Company"), India's one of the leading casual and denim player in the meeting of the Board of Directors of the Company ("Board") held on June 21, 2020, approved re-launch of its Rights Issue (which was earlier deferred due to then prevailing situation in the country and overall market conditions on account of COVID-19 pandemic) with revised issue size, issue price and entitlement ratio of the Rights Issue.

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 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 Company has revised the size of the Rights Issue from Rs. 299.64 crore to up to Rs. 399.79 crore.

Speaking about the Rights Issue, Mr. Kulin Lalbhai, Director, 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."

The promoters will be fully subscribing to their rights entitlement and will reserve their right to subscribe to any additional equity shares in the issue is under-subscribed, subject to applicable laws. The Board has also revised the issue price of the Rights Issue from Rs. 150 per Equity Share to Rs. 100 per Equity Share (including premium of Rs. 96 per Equity Share) and consequently, revised rights entitlement ratio of 62 (Sixty Two) Rights Equity Shares for every 91 (Ninety One) Equity Shares of the Company held by eligible equity shareholders as on the Record Date, i.e., March 18, 2020.

Source : Equity Bulls

Keywords