Arvind Fashions raises Rs. 439 Crores from marquee investors

The Board of Directors of Arvind Fashions Limited (AFL) at its meeting held today has approved the preferential allotment of equity shares aggregating to Rs. 439 Crores to various marquee investors including promoters at the price of Rs. 218.50, as per SEBI ICDR Regulations, 2018.

The marquee investors who participated in the fund raise are Akash Bhanshali, existing shareholders including ICICI Prudential Mutual Fund, various foreign institutional investors (including University of Notre Dame Du Lac, GP Emerging Markets Strategies L.P., The Ram Fund L.P.), Ashish Dhawan and other investors. Aura Merchandise Pvt. Ltd., a Promoter entity has also participated in the preferential issue for an amount of Rs. 40 Crores.

With this fund raise, it completes the capital requirement needed for growth and navigating any uncertainties. With focused strategy of profitable growth, Company is unlikely to require any more funding in near to medium term.

Speaking on the investment, Kulin Lalbhai, Non-Executive Director, Arvind Fashions, said, "We're extremely happy to have the confidence and strong support from our existing and new investors. This capital will go a long way in completely strengthening AFL's balance sheet and help counter any potential Covid related uncertainties."

Commenting on the preferential issue, Shailesh Chaturvedi, Chief Executive Officer, Arvind Fashions, said, "Business momentum continues to be strong and we are focused on growing our 6 high conviction brands. This capital will help significantly deleverage the Company's balance sheet and adequately fund the growth in the coming quarters, thereby, further strengthening our leadership in the casualwear, denim & prestige beauty categories in the industry."

The completion of the transaction is subject to necessary shareholder & SEBI approvals. Metta Capital acted as the exclusive financial advisor to AFL for this transaction.

Shares of Arvind Fashions Limited was last trading in BSE at Rs. 239.9 as compared to the previous close of Rs. 250.6. The total number of shares traded during the day was 121466 in over 2775 trades.

The stock hit an intraday high of Rs. 250.15 and intraday low of 234.15. The net turnover during the day was Rs. 29195078.

Source : Equity Bulls

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