Arvind Fashions to raise Rs 439cr through preferential allotment of shares
Arvind Fashions Limited (AFL) said that its board of directors has approved raising of INR 439 crores via the preferential allotment of equity shares to multiple marquee investors including promoters.
The shares in the preferential allotment will be issued at a price of INR 218.5 each.
According to Arvind Fashions, the marquee investors taking part in the fund raise are Akash Bhanshali, its existing shareholders — ICICI Prudential Mutual Fund, University of Notre Dame Du Lac, GP Emerging Markets Strategies, The Ram Fund, and various foreign institutional investors, Ashish Dhawan, and other investors.
Aura Merchandise, a promoter entity also took part in the preferential issue for an amount of INR 40 crores.
The clothing retailer said that the fund raise has enabled it to complete the capital requirement essential for growth and handling any uncertainties.
Arvind Fashions said that it is not expected to require any more funding in near to medium term due to its focused strategy of profitable growth.
Kulin Lalbhai — Non-Executive Director of 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.”
The closing of the preferential allotment is contingent of the required shareholder and SEBI approvals.
Shailesh Chaturvedi — CEO of 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.”
Last month, Arvind Fashions through its subsidiary Arvind Lifestyle Brands agreed to divest all the existing operating stores of Unlimited to V-Mart Retail for around INR 150 crores.