Stock Report

Aditya Birla Fashion Ltd. successfully completes ~ Rs. 1860 Cr QIP

Posted On : 2025-01-24 13:03:32( TIMEZONE : IST )

Aditya Birla Fashion and Retail Limited ("ABFRL") has announced the completion of the fundraise through a Qualified Institutional Placement ("QIP") of equity shares aggregating to ~ Rs 1,860 crores.

The QIP Committee of the Board of Directors of the Company ("QIP Committee") has, at its meeting held today i.e., January 21, 2025, approved the issue and allotment of 68,583,059 equity shares of face value Rs 10 each to eligible Qualified Institutional Buyers ("QIBs") at the issue price of Rs 271.3 per Equity Share (including a premium of Rs 261.3 per Equity Share), aggregating to ~ Rs 1,860 crores.

The Company's first-ever QIP transaction which opened on January 16, 2025, and closed on January 21, 2025, received an overwhelming response from prominent domestic and foreign institutional investors, with a subscription of ~ 2X. The successful QIP comes on the back of a preferential issuance of ~ Rs. 2,379 crores, with participation from promoter group, investing ~ Rs.1,298 crores and Fidelity Investments, investing ~ Rs. 1,081 crores.

The successful fundraise reflects investor confidence in the high-growth potential of India's fashion industry and the Company's distinctive position as a leading player in the market. The fundraise will make the consolidated entity debt-free and pave the way for the rapid expansion of key growth platforms established over the last few years.

Mr. Ashish Dikshit, Managing Director, Aditya Birla Fashion and Retail Ltd. said "The robust investor interest underscores the inherent strength and long-term potential of our brands and the distinctiveness of our business model. This strategic capital infusion positions us to expedite our growth trajectory at a pivotal moment in India's evolving consumption landscape. We are proud to play a leading role in India's fashion sector, which is set for transformative expansion as the shift toward organized retail gathers pace."

Avendus Capital Private Limited, Goldman Sachs (India) Securities Private Limited and Jefferies India Private Limited were managers of the QIP offering.

The Preferential issuance and QIP will be subject to further customary & regulatory approvals.

Shares of Aditya Birla Fashion and Retail Limited was last trading in BSE at Rs. 282.55 as compared to the previous close of Rs. 279.05. The total number of shares traded during the day was 54736 in over 1781 trades.

The stock hit an intraday high of Rs. 283.95 and intraday low of 274.95. The net turnover during the day was Rs. 15334975.00.